Patanjali Foods Limited has informed the Exchange about show cause notice by the Office of the Assistant Commissioner (ST), Royapuram (C) Assessment Circle, North Division, Chennai, GST.
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Patanjali Foods Limited received a show cause notice from the Office of Assistant Commissioner (ST), Royapuram, Chennai regarding alleged discrepancies in GST returns for FY 2022-23. The tax authority found differences between the Company's GSTR-3B returns and TDS deductors' GSTR-7 returns, leading to a tax demand of Rs. 1,352.92 crore (Rs. 676.46 crore each in SGST and CGST), plus a penalty of Rs. 135.29 crore and applicable interest at 18%. The total potential liability including interest could be significantly higher. The Company states it does not expect any financial liability and is preparing to submit its response with supporting documentation in consultation with tax advisors.
This is a regulatory notice at an early stage and does not constitute a confirmed penalty. The Company plans to contest the notice, so immediate shareholder impact is limited. However, if the demand is upheld, it could result in a material financial liability exceeding Rs. 1,400 crore plus interest.