Patanjali Foods Faces Rs 1,352 Crore GST Demand Over Alleged Return Discrepancies

Patanjali Foods Limited has informed the stock exchanges of India that it has received a show cause notice (SCN) dated May 25, 2026, on the grounds of alleged discrepancies in GST returns for the Financial Year 2022-23 (Assessment Year 2023-24). The GST authorities had observed discrepancies between the turnover reported by the company in its GSTR-3B returns and the details available in GSTR-7 returns filed by TDS deductors.

The notice has been passed by the Office of the Assistant Commissioner (ST) Royapuram (C) Assessment Circle, North Division, Chennai, under Section 73 of the Tamil Nadu Goods and Services Tax Act, 2017 and the Central Goods and Services Tax Act, 2017 through Form GST DRC-01.

Based on these alleged anomalies, the department has proposed a GST demand of Rs 1,352.92 crore, comprising Rs 676.46 crore each under CGST and SGST. In addition, a penalty of Rs. 135.29 crore and applicable interest at 18% have also been proposed.

Patanjali Foods clarified that the matter is currently at the show-cause notice stage and no final liability has been determined. The company stated that it is preparing an appropriate response in consultation with its tax advisors and believes it has adequate grounds to defend its position before the authorities.

It has been further clarified that the present action does not have any exact impact on its financial liability arising from the proceedings. However, the exact financial impact, if any, can only be determined after completion of the legal process.