Patanjali Foods has received a GST demand notice of Rs 1,352.9 crore over an alleged mismatch in taxable turnover reported for FY23, the company said on Thursday. The notice was issued by the GST's Assessment Circle in Chennai.
According to the show-cause notice, Patanjali Foods allegedly under-reported taxable turnover by around Rs 7,516 crore during the period from April 2022 to February 2023.
Tax authorities stated that the company disclosed taxable turnover of Rs 8,140.63 crore in its GSTR-3B filings for the period, while taxable turnover of Rs 15,656.88 crore was allegedly reflected in TDS returns filed by various deductors. Based on the alleged mismatch, authorities proposed a GST demand of Rs 1,352.9 crore, along with 18 percent interest and a 10 percent penalty.
Patanjali Foods denied the allegations, calling them “factually incorrect”. The company said it had already submitted a detailed clarification along with supporting documents to the tax authorities.
Patanjali Foods said it is preparing an appropriate response in consultation with its tax advisers and believes it has adequate grounds to defend its position before the authorities within the prescribed timelines.
The company also stated that it does not expect any financial liability arising from the notice at this stage, although the final implications will depend on the outcome of the proceedings.
