Patanjali Foods Receives Significant GST Demand
Patanjali Foods, a prominent Indian consumer goods company, announced it has received a show-cause notice from the Goods and Services Tax (GST) department. The notice, issued by the Chennai North Division, demands a substantial sum of ₹1,352.92 crore, including tax dues and penalties, for alleged turnover discrepancies during the financial year 2022-23.
The company confirmed receiving the notice on May 25, 2026, and stated its intention to contest the demand. This development comes amid increased scrutiny by GST authorities on companies' tax filings and turnover declarations.
Allegations of Turnover Discrepancies
According to the regulatory filing by Patanjali Foods, the GST authority alleges significant differences between the company’s monthly GSTR-3B returns and the corresponding GSTR-7 returns filed by tax deductors. These discrepancies form the basis for the hefty tax demand.
The total amount includes ₹676.46 crore each under State GST (SGST) and Central GST (CGST). Additionally, the notice imposes a penalty of ₹135.29 crore each for SGST and CGST. The authority is also seeking 18% interest on the outstanding CGST and SGST dues for the specified tax period.
Company Prepares to Contest Notice
Patanjali Foods has indicated that it is actively consulting with its tax advisors to formulate an appropriate response to the notice. The company maintains that it possesses sufficient grounds to substantiate its position and will file a detailed reply with the relevant authority within the stipulated timelines.
While acknowledging the receipt of the notice, Patanjali Foods does not anticipate any immediate financial liability stemming from this demand. The final financial impact, if any, will depend on the outcome of the ongoing proceedings and appeals process.