Patanjali Foods Ltd. is currently in the spotlight after receiving a show cause notice from the tax department, demanding a Goods and Services Tax (GST) payment of ₹1,353 crore, along with an applicable penalty. The notice, issued by the Office of the Assistant Commissioner (ST), Royapuram (C) Assessment Circle, North Division, Chennai, highlights alleged discrepancies and anomalies in the company's turnover for the financial year 2022-23.
The tax authority's action stems from a comparison of GSTR-3B monthly returns filed by Patanjali Foods with corresponding GSTR-7 returns submitted by its TDS deductors. This comparison revealed the alleged differences in turnover reporting, leading to the substantial tax demand.
Company's Response and Future Outlook
In an exchange filing, Patanjali Foods confirmed the receipt of the notice, which proposes a total tax demand of ₹13,52,92,49,106 along with a penalty aggregating to ₹1,35,29,24,910 under the provisions of applicable GST laws. The company, which operates in diverse sectors including edible oil processing, food products, and fast-moving consumer goods (FMCG), stated it is actively preparing its response.
Patanjali Foods expressed confidence in its position, asserting that it has adequate grounds to substantiate its filings and will submit an appropriate response to the relevant authority within the stipulated timelines. As of now, the company does not anticipate any immediate financial liability, though it acknowledged that the exact financial implications cannot be determined until the completion of the proceedings.
Upcoming Board Meeting and Financial Results
The development comes just ahead of Patanjali Foods' crucial board meeting scheduled for May 30. During this meeting, the company's board is set to consider and approve its audited standalone and consolidated financial results for the quarter and year ended March 31. Additionally, the board will officially take on record the report issued by the company's statutory auditors. Investors will be closely watching these proceedings for further clarity on the company's financial health and its strategy for addressing the GST demand.