Patanjali Foods receives GST demand of Rs 1,353 crore; here's what investors need to know

Patanjali Foods Receives GST Notice: Patanjali Foods Limited, on Wednesday, May 27, has received a Goods and Services Tax (GST) show cause notice for payment of Rs 1,352.92 crore for FY23. The fast-moving consumer goods (FMCG) company said it has received a notice from the Office of the Assistant Commissioner (ST), Royapuram (C) Valuation Circle, Chennai. The communication was officially received by the company on May 25, 2026.

The show cause notice, issued under Section 73 of the Tamil Nadu GST Act, 2017 and the Central GST Act, 2017, mentioned alleged discrepancies and irregularities between the GSTR-3B return of the company and the GSTR-7 return filed by the TDS deductors.

"Patanjali Foods Limited (“Company”) has received a Show Cause Notice (“SCN”) in Form GST DRC-01 issued under Section 73 of the Tamil Nadu Goods and Services Tax Act, 2017 and the Central Goods and Services Tax Act, 2017 by the Office of the Assistant Commissioner (ST), Royapuram (C)Assessment Circle, Chennai North Division, Tamil Nadu," said the company in the in a stock exchange filing.

Also Read: Supreme Court upholds 28% GST on online gaming, rejects retrospective tax challenges worth Rs 1.5 lakh crore

The total tax demand includes Rs 676.46 crore each under the SGST and CGST. In addition to the tax demand, authorities have proposed a penalty of Rs 135.29 crore at the rate of 10 per cent of the demand amount. The notice also proposes interest at the rate of 18 per cent on both CGST and SGST.

Patanjali Foods said it is consulting tax advisors and plans to submit an appropriate response within the prescribed timeline. The company also stated that, at present, it does not expect any financial liability from the matter.

Also Read: Trade body CTI urges centre to bring petrol and diesel under GST, writes to PM Modi

Here are 10 key pointers that investors need to know

• Patanjali Foods has received a GST notice, which it has now disclosed under SEBI’s LODR norms.
• The company informed both BSE and NSE through a filing dated May 27, 2026.
• The notice has been issued in Form GST DRC-01, used by tax authorities for demand and recovery matters.
• Patanjali Foods says it is still not in a position to assess what the financial impact could be.
• The matter is still open and will go through the usual legal and tax process.
• The disclosure was signed by Company Secretary Ramji Lal Gupta from Indore.
• Also Read: April GST collections hit Rs 2.42 lakh crore, refunds jump 19% YoY to Rs 31,793 crore
• At this stage, it is only a Show Cause Notice, not a final order.
• That means no tax liability has been fixed yet, and the company can still present its case.
• The issue is linked to differences between GSTR-7 filings and GSTR-3B returns.
• The company says it has enough grounds to defend its position and plans to contest the notice.

Patanjali Foods Results

On a separate note, a few months ago, FMCG company Patanjali Foods -- part of the yoga guru Ramdev-led Patanjali group -- reported a net profit of Rs 593 crore for the quarter ended December 31, marking an increase of 60 per cent over the corresponding quarter a year ago. The edible oil maker staged a weak performance on the operational front.