Patanjali Foods Limited has issued a disclosure regarding Show Cause Notices (SCNs) received from the Uttarakhand State Tax Department. The notices allege the wrongful availing of ineligible Input Tax Credit (ITC) and other discrepancies for the financial year 2022-23. While the company is preparing its response, it currently does not expect any financial liability, though exact implications remain undetermined pending the conclusion of proceedings.
Tax Authorities Issue Show Cause Notices
Patanjali Foods Limited has announced the receipt of Show Cause Notices (SCNs) from the Office of the Deputy Commissioner (S.I.B./Enforcement), State Tax Department, Uttarakhand. These notices, received on May 30, 2026, pertain to alleged discrepancies and the wrongful availing of ineligible Input Tax Credit (ITC) for the financial year FY 2022-23.
Allegations and Demands
The SCNs, issued in Form GST DRC-01, cite alleged availing of ineligible ITC and other discrepancies. The notices demand a total tax of Rs. 4,07,16,282/-, comprising Rs. 1,14,32,784/- each in SGST and CGST, and Rs. 1,78,50,714/- in IGST. Additionally, a penalty aggregating to Rs. 72,55,70,769/- has been proposed, along with applicable interest, under the relevant provisions of GST laws.
Company’s Response and Outlook
Patanjali Foods Limited is currently in the process of formulating and submitting appropriate responses to these notices, in consultation with its tax advisors. The company states that it believes it possesses adequate grounds to substantiate its position and intends to file a comprehensive response before the relevant authority within the prescribed timelines. As of now, the company does not expect any financial liability. However, the exact financial implications cannot be determined until the proceedings are concluded.
Communication Details
The communication was received by Patanjali Foods Limited and relates to the period of FY 2022-23. The company has provided details as per SEBI regulations, emphasizing its ongoing engagement with tax advisors to address the allegations.
Source: BSE
