Patanjali Foods Limited Receives Tax Show Cause Notices Pertaining to ITC for FY 2022-23
Patanjali Foods Limited has received Show Cause Notices (SCNs) from the Office of the Deputy Commissioner (S.I.B./Enforcement), State Tax Department, Uttarakhand, concerning alleged discrepancies and the availing of ineligible Input Tax Credit (ITC) for the financial year 2022-23.The communication was received by the company on May 30, 2026.
The SCNs, issued under the Uttarakhand Goods and Services Tax Act, 2017, and the Central Goods and Services Tax Act, 2017, pertain to investigations into alleged discrepancies.
Details of Tax Demands
The notices propose specific financial demands for the period FY 2022-23. The total proposed tax demand, including penalty and applicable interest, aggregates to a substantial amount.The initial tax demand focuses on the following components:
| Tax Component | Amount Demanded |
|---|---|
| SGST | Rs. 1,14,32,784/- |
| CGST | Rs. 1,14,32,784/- |
| IGST | Rs. 1,78,50,714/- |
| Total ITC Demand | Rs. 4,07,16,282/- |
| Penalty (Aggregate) | Rs. 72,55,70,769/- |
The total quantification of claims mentioned in the notices includes the Rs. 4,07,16,282/- tax demand along with the penalty aggregating to Rs. 72,55,70,769/-, plus applicable interest under the relevant GST laws.
Company Response and Stance
In response to the SCNs, Patanjali Foods Limited confirmed that it is in the process of submitting appropriate responses in consultation with its tax advisors.The company stated that it believes it possesses adequate grounds to substantiate its position and intends to file its comprehensive response before the relevant authority within the prescribed timelines.
Regarding the financial implications, the company noted that while the exact financial liability cannot be determined until the completion of the proceedings, it does not currently expect any financial liability.
PATANJALI Stock Price Movement
Today, Patanjali Foods Limited shares edged higher, gaining 0.17% to close at ₹451.55. The equity finished in a strong day-range, trading between ₹441.5 and ₹455, against a backdrop of 3.88 million shares traded.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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