Patanjali Foods receives ₹1,352.92 Cr GST demand notice

Patanjali Foods Limited has received a Show Cause Notice (SCN) from the Assistant Commissioner (ST), Chennai, intimating alleged discrepancies in GST returns for April 2022 to February 2023. The SCN proposes a tax demand of ₹1,352.92 crores, along with 18% interest and a 10% penalty. The allegation is an under-reporting of taxable turnover by ₹7,516.25 crores, comparing the company's GSTR-3B returns with TDS returns filed by deductors. Patanjali Foods strongly denies these allegations, stating that the figures cited in the SCN are factually incorrect and inconsistent with records on the GST common portal. The company asserts its reported taxable supplies were ₹2,017.27 crores, and TDS returns showed only ₹109.48 crores, not the alleged amounts. Based on legal advice, the company believes it has a strong case and expects the proceedings to be dropped.