Patanjali Foods Limited has clarified the timeline surrounding its disclosure of a show cause notice from the Uttarakhand State Tax Department demanding a penalty of Rs 72.55 crore. The notice, which alleges the availing of ineligible Input Tax Credit (ITC) for FY23, was received via email on Saturday, May 30, 2026, after office hours. The company stated that the concerned officer was on leave the following Monday, June 1, 2026, causing the notice to come to the department's attention only on that day. Consequently, the disclosure was submitted to the exchanges on Tuesday, June 2, 2026.

The notice, dated May 30, 2026, demands a total tax of Rs 4,07,16,282 along with a penalty of Rs 72,55,70,769. The demand was issued under Section 74(1) read with Section 50 and 122 of the Uttarakhand Goods and Services Tax Act, 2017 and the Central Goods and Services Tax Act, 2017. The total tax demand includes Rs 1,14,32,784 each in SGST and CGST, and Rs 1,78,50,714 in IGST, plus applicable interest.

Company Response and Financial Impact

Patanjali Foods stated that it is currently in the process of submitting appropriate responses in consultation with its tax advisors. The management believes it has adequate grounds to substantiate its position and intends to file an appropriate response before the relevant authority within the prescribed timelines. As of now, the company does not expect any financial liability arising from these notices, though it noted that exact financial implications cannot be determined until the completion of the proceedings.

Breakdown of Demand

The disclosure was made to the exchanges in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Patanjali Foods witnessed a notable block trade on the National Stock Exchange (NSE), with approximately 5,01,931 shares changing hands in a single transaction. The deal was executed at a price of Rs. 442.75 per share, aggregating to a total transaction value of Rs. 22.22 crores.

Block Trade Details

The following table summarises the key parameters of the block trade recorded on the NSE:

Block trades of this nature typically involve large institutional or high-net-worth participants and are executed outside the regular order book to minimise market impact. The transaction in Patanjali Foods reflects notable activity in the stock at the stated price level.