Patanjali Foods Receives Tax Order Imposing Penalty of ₹80 Lakh for ITC Reversal in Rajasthan
Patanjali Foods Limited has received an order from the Office of the Deputy Commissioner, State Tax Department, Circle-H, Jaipur-1, Rajasthan. The order concerns the reversal of Input Tax Credit (ITC) and carries a penalty aggregating to ₹80,37,898/-.The communication was received by the company on July 28, 2026. The Order in Original (No. DRC-07/2026-27/Circle-H/01 dated 28.07.2026) was issued under GST laws and relates to alleged irregularities regarding ITC utilization.
The central issue identified by the tax authority is the wrongful availing of excess ITC and the non-reversal of this ineligible ITC. As a result, Patanjali Foods Limited has been imposed a penalty amounting to ₹ 80,37,898/-.
In response to the communication, the company stated that it will be taking necessary action to defend its case before the appellate authority.
The financial impact of the order has been assessed by the company. Patanjali Foods Limited noted that it does not expect any financial liability beyond the penalty amount of ₹ 80,37,898/- and asserts that the matter will not affect the operational or financial activities of the company.
Key details regarding the regulatory action are summarized below:
| Detail | Specification |
|---|---|
| Authority | Office of the Deputy Commissioner, State Tax Department, Circle-H, Jaipur-1, Rajasthan |
| Date of Receipt | July 28, 2026 |
| Allegation | Wrongly availed excess ITC and failure to reverse ineligible ITC |
| Penalty Imposed | ₹ 80,37,898/- |
| Company Action | The company intends to defend its case with the appellate authority. |
PATANJALI Stock Price Movement
Patanjali Foods Limited closed today with a strong rally, gaining 4.10% to settle at ₹357.15. The stock traded effectively with a volume of 17.75 million shares during the market session.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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