Patanjali Foods Limited Receives Order from Central Goods and Service Tax Authority
Patanjali Foods Limited announced on March 17, 2026, that it received an order from the Office of the Commissioner of Central Goods and Service Tax and Central Excise – Kutch (Gandhidham). The order, dated March 13, 2026, pertains to a reversal of Cess Input Tax Credit (ITC), excess ITC availed, and non-payment of Reverse Charge Mechanism (RCM) during the years 2019-20, 2020-21, 2021-22, and 2022-23.The company estimates a potential financial liability of Rs. 3,86,78,700, including tax demand with interest and penalty. Patanjali Foods Limited stated that it does not anticipate any other impact on its financial, operational, or other activities.
The authority identified excess availment of ITC during the years 2019-20, 2020-21, 2021-22 and 2022-23, Cess ITC during the year 2022-23, and non-payment of RCM on a transaction during the year 2021-22. A penalty of Rs. 3,86,78,700 has been imposed. The company plans to take necessary action to defend its case before the appellate authority.
| Particulars | Details |
|---|---|
| Name of the listed Company | Patanjali Foods Limited |
| Date of receipt of communication | Order dated March 13, 2026 (Received through e-mail and uploaded on GST portal on March 16, 2026) |
| Brief summary of the material contents of the communication received, including reasons for receipt of the communication | Order for reversal of CessInput Tax Credit (ITC), excess availed ITC and Non-payment of RCM during the year 2019-20, 2020-21, 2021-22 and 2022-23. |
| Expected financial implications on the listed Company, if any | The Company does not expect any financial liability except to the extent of tax demand with interest thereon and penalty of Rs. 3,86,78,700/-. |
| Details of any penalty or restriction or sanction imposed pursuant to the communication. | A penalty of Rs. 3,86,78,700/- (Three Crore Eighty-Six Lakhs Seventy-Eight Thousand Seven Hundred Only) has been imposed. |
| Action(s) taken by listed company with respect to the communication. | The Company will be taking necessary action to defend its case before the appellate authority. |
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