Patanjali Foods Limited has been hit with a penalty of ₹3,86,78,700 following a communication from the Office of the Commissioner of Central Goods and Service Tax and Central Excise, Kutch. The order, dated 13 March 2026, was received by the company via email and uploaded on the GST portal on 16 March 2026.
The communication pertains to the reversal of Cess Input Tax Credit (ITC), excess availed ITC, and non-payment of Reverse Charge Mechanism (RCM) during the financial years 2019-20 to 2022-23. The authority identified discrepancies in the availment of ITC across these years, particularly highlighting issues with Cess ITC in 2022-23 and non-payment of RCM in 2021-22.
Despite the penalty, Patanjali Foods has indicated that it does not anticipate any significant financial liability beyond the tax demand, interest, and penalty specified. The company asserts that the order will not affect its financial, operational, or other activities.
In response to the order, Patanjali Foods plans to take necessary actions to defend its case before the appellate authority. The company has not disclosed any additional information regarding the matter.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).