Patanjali Foods Gets Relief as Rs 1,353 Crore GST Demand Is Dropped:

Patanjali Foods Gets Relief as Rs 1,353 Crore GST Demand Is Dropped Patanjali Foods Limited has informed the stock exchanges that a major GST demand raised against the company has been withdrawn by the tax authorities. The company received a show cause notice on June 12, 2026 from the Office of the Assistant Commissioner (ST), Royapuram Assessment Circle, Chennai, dated May 25, 2026 regarding certain alleged discrepancies in GST returns for the FY 2022-23 and demanded Rs. 13,529,249,106.

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The Company submitted its reply to the said notice. After examining the reply of the company, the authority has accepted the company's submissions and observed that no short payment of tax exists for the period under scrutiny. On examination of the company’s reply, the demand was found to be based on an error in the records of the GST authority. The authority has rectified the error as per Section 161 of the Tamil Nadu GST Act 2017 and has dropped the demand proposed in the Show Cause Notice. The proceedings initiated vide DRC-01 have been dropped and the matter stands closed. The Company does not foresee any financial liability as the proceedings initiated vide DRC-01 have been dropped and the matter stands closed.