Legal17 Mar 2026, 05:02 pm
Patanjali Foods Ltd Faces Rs. 3,86,78,700 Penalty for Excess ITC and Non-Payment of RCM
AI Summary
Patanjali Foods Ltd has received an order from the Office of the Commissioner of Central Goods and Service Tax and Central Excise - Kutch (Gandhidham) imposing a penalty of Rs. 3,86,78,700 for excess availment of Input Tax Credit (ITC) during the years 2019-20, 2020-21, 2021-22 and 2022-23, non-payment of Reverse Charge Mechanism (RCM) during the year 2021-22, and Cess ITC during the year 2022-23. The company is expected to face financial implications in the form of tax demand with interest and penalty. However, it does not anticipate any other impact on its financial, operational, and other activities. Patanjali Foods Ltd intends to defend its case before the appellate authority.
Key Highlights
- Patanjali Foods Ltd has been penalized Rs. 3,86,78,700 by the Office of the Commissioner of Central Goods and Service Tax and Central Excise - Kutch (Gandhidham).
- The penalty is imposed for excess availment of Input Tax Credit (ITC) during the years 2019-20, 2020-21, 2021-22 and 2022-23.
- Non-payment of Reverse Charge Mechanism (RCM) during the year 2021-22 and Cess ITC during the year 2022-23 are also cited as reasons for the penalty.
- The company anticipates financial implications in the form of tax demand with interest and penalty.
- Patanjali Foods Ltd plans to defend its case before the appellate authority.