Patanjali Foods has received a show-cause notice from GST authorities in Tamil Nadu over alleged discrepancies in turnover reported in its returns for FY23, with the proposed tax demand exceeding Rs 1,352 crore, according to a stock exchange filing on Wednesday.
The company said the Office of the Assistant Commissioner (ST), Royapuram (C) Assessment Circle, Chennai North Division, issued the notice under Section 73 of the CGST and Tamil Nadu GST Acts. “we hereby submit the disclosure regarding issuance of show cause notice by the Office of the Assistant Commissioner (ST), Royapuram (C) Assessment Circle, North Division, Chennai, intimating alleged discrepancies in the GST Return,” they said.
According to the filing, the tax authority has alleged “differences and anomalies” between the company’s GSTR-3B monthly returns and corresponding GSTR-7 returns filed by TDS deductors for FY 2022-23.
“The authority on comparison of GSTR-3B monthly returns filed by the Company with corresponding GSTR-7 filed by the Deductors of TDS found differences and anomalies in turnover,” they said.
The notice proposes a GST demand of Rs 1,352.92 crore, comprising Rs 676.46 crore each towards SGST and CGST, along with a penalty of Rs 135.29 crore and applicable interest at 18%.
Patanjali Foods said it is consulting tax advisors and preparing an appropriate response within the prescribed timelines. The company added that it believes it has “adequate grounds to substantiate its position” before the authorities.
“As of now, the Company does not expect any financial liability. However, exact financial implications cannot be determined till the completion of the proceedings,” the company said in the filing.
The company clarified that the proceedings stem from reconciliation issues identified during comparison of GST filings and TDS-related returns submitted by deductors.
Source from: https://legal.economictimes.indiatimes.com/news/corporate-business/patanjali-foods-faces-1352-crore-gst-show-cause-notice-due-to-turnover-mismatch/131354859
