Patanjali Foods Gets Show Cause Notice For GST Dues:

Patanjali Foods Gets Show Cause Notice For GST Dues The GST intelligence department has sent a show cause notice to Patanjali Foods, asking the company to explain why an input tax credit of Rs 27.46 crore should not be recovered from it. According to a regulatory filing made by the company on April 26, the Directorate General of GST Intelligence, Chandigarh Zonal Unit, has issued a notice to the yoga guru Ramdev-led Patanjali Ayurved Group firm, which specializes in edible oils. The company received a show cause notice requesting an explanation for why an input tax credit of Rs 27,46,14,343. should not be recovered (along with interest), and why a penalty should not be imposed," the business said in a statement. The department cited Section 74 and other pertinent provisions of the Central Goods and Services Act of 2017 and the Uttarakhand State Goods and Services Act of 2017, as well as Section 20 of the Integrated Goods and Services Tax (IGST) Act of 2017. "As of now, the authority has only issued a show cause notice, and the company will be taking all necessary action to defend its case before the authority," the company said in a statement. "The expected financial implications cannot be determined until the completion of the proceedings," according to the statement. Patanjali Foods announced last week that it will explore a bid to purchase the non-food business of promoter firm Patanjali Ayurved. Patanjali Foods stated in a regulatory filing that its board has examined the initial proposal received from Patanjali Ayurved Ltd. to sell the latter's non-food business endeavour to the company. Patanjali Foods Ltd., originally Ruchi Soya Industries Ltd., is a renowned FMCG company that was founded in 1986. The company engages in the edible oils, food and FMCG, and wind power generation areas with a portfolio of brands including Patanjali, Ruchi Gold, Nutrela, and others. Patanjali Ayurved purchased Ruchi Soya through the insolvency process and then renamed it Patanjali Foods Limited.