Patanjali Foods receives GST show cause notice over FY23 discrepancies

The tax authority has proposed a demand of Rs 1,352.92 crore, along with a penalty of Rs 135.29 crore

by e4m Desk
Published: May 28, 2026 4:59 PM | 1 min read

Patanjali Foods Limited received a show cause notice from the Office of the Assistant Commissioner (State Tax) in Chennai regarding alleged discrepancies in its GST filings for the financial year 2022-23.
The notice highlights differences between the company's GSTR-3B returns and GSTR-7 returns filed by deductors, with a proposed demand of Rs 1,352.92 crore and a penalty of Rs 135.29 crore, plus interest at 18%.
The company is reviewing the notice and plans to respond appropriately in consultation with tax advisors, asserting it has adequate grounds to support its position.
Patanjali Foods does not currently anticipate any financial liability from the notice, although the final impact will depend on the outcome of the proceedings.

Patanjali Foods Limited has shared that it has received a show cause notice from the Office of the Assistant Commissioner (State Tax), Royapuram (C) Assessment Circle, North Division, Chennai, over alleged discrepancies in GST filings.

According to the company’s regulatory filing, the notice has been issued in connection with differences identified between GSTR-3B returns filed by the company and GSTR-7 returns filed by deductors for the financial year 2022–23.

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The tax authority has proposed a demand of Rs 1,352.92 crore, along with a penalty of Rs 135.29 crore and applicable interest at 18% under the relevant GST provisions.

The company said it is currently reviewing the matter and will submit an appropriate response in consultation with its tax advisors within the prescribed timelines. It added that it believes ‘it has adequate grounds to substantiate its position’.

Patanjali Foods further stated that, at this stage, it does not expect any financial liability arising from the notice, although the final impact, if any, will depend on the outcome of the proceedings.