Patanjali Foods Limited has disclosed receipt of an Order-in-Original from the Commissioner of Central Goods and Service Tax pertaining to tax periods between 2019-20 and 2022-23. The order mandates the reversal of Input Tax Credit (ITC) and payment for non-payment of Reverse Charge Mechanism (RCM). A total penalty of ₹3,86,78,700/- has been imposed. The company intends to defend its position by filing an appeal against the order.
Regulatory Communication Received
Patanjali Foods Limited has formally informed the stock exchanges about receiving a significant communication from the Office of the Commissioner of Central Goods and Service Tax and Central Excise in Kutch (Gandhidham). This disclosure was made on March 17, 2026, concerning an Order-in-Original issued on March 13, 2026.
Summary of the Order and Financial Impact
The communication primarily concerns an order for the reversal of Cess Input Tax Credit (ITC) that was allegedly in excess, along with penalties related to the non-payment of the Reverse Charge Mechanism (RCM). This matter covers the financial periods spanning 2019-20, 2020-21, 2021-22, and 2022-23.
The authority has specifically identified aberrations including excess availment of ITC across most of these years, Cess ITC non-compliance in 2022-23, and RCM non-payment in 2021-22. Consequently, a penalty sanction of Rs. 3,86,78,700/- (Three Crore Eighty-Six Lakhs Seventy-Eight Thousand Seven Hundred Only) has been imposed.
The Company stated that it does not expect any other financial liability beyond this tax demand, interest, and penalty, indicating no anticipated impact on its general operational or financial activities.
Company’s Course of Action
In response to the levied sanction, Patanjali Foods Limited has confirmed its planned course of action. The Company will be taking necessary action to defend its case before the appellate authority, signaling its intent to contest the findings of the GST Commissionerate.
Source: BSE
