GST shocker for Patanjali Foods: Company gets ₹1,352 cr tax notice over turnover discrepancies

Baba Ramdev’s Patanjali Foods said on Wednesday it has received a show-cause notice from the GST department demanding more than ₹1,352 crore over alleged discrepancies and anomalies in turnover reported by the company and deductors of TDS for FY2022-23.

In a regulatory filing, the company said the notice was issued by Chennai North Division and was received on May 25 (Monday).

According to the filing, the authority alleged differences between the company’s GSTR-3B monthly returns and corresponding GSTR-7 returns filed by deductors of TDS.

The notice demanded ₹1,352.92 crore, including ₹676.46 crore each under SGST and CGST, along with a penalty of ₹135.29 crore each under SGST and CGST. The authority also sought 18% interest on CGST and SGST dues for the 2022-23 tax period.

“Due to alleged differences and anomalies in turnover reported by the Company and deductors of TDS, the above Authority has issued a Show Cause Notice,” the company said in the filing.

Patanjali Foods said it was consulting tax advisors and would file an appropriate response within the prescribed timelines. “The Company is in the process of submitting appropriate responses in consultation with its tax advisors. The Company believes that it has adequate grounds to substantiate its position and will file an appropriate response before the relevant authority within the prescribed timelines.”

The company added that, at present, it does not expect any immediate financial liability arising from the notice, though the final impact would depend on the outcome of the proceedings. “As of now, the Company does not expect any financial liability. However, exact financial implications cannot be determined till the completion of the proceedings,” it said.

The notice comes amid heightened scrutiny by GST authorities over mismatches in tax filings and turnover declarations by companies.