Patanjali Foods Limited has been directed to pay a penalty of ₹80,37,898 by the Office of the Deputy Commissioner, State Tax Department, Circle-H, Jaipur-1, Rajasthan. The order, dated July 28, 2026, cites the company’s alleged wrongful availment of excess Input Tax Credit (ITC) and failure to reverse ineligible ITC under Goods and Services Tax (GST) laws. Patanjali Foods disclosed the communication to stock exchanges on July 29, 2026, stating that the penalty will not impact its broader financial or operational activities.

The disclosure was made pursuant to Regulation 30 read with sub-para 20 of Para A of Part A of Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing also references SEBI Circular No. SEBI/HO/CFD/CFD-PoD-2/P/CIR/2025/25 dated February 25, 2025, and SEBI Master Circular HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

Key Details of the Order

The tax authority issued the Order-in-Original in Form DRC-07, directing the reversal of ITC deemed wrongly availed. The specific contravention identified involves the failure to reverse ITC that was ineligible under GST regulations.

Company Response

Patanjali Foods stated that it does not expect any financial liability beyond the specified penalty amount of ₹80,37,898. The company emphasized that the order will not have any impact on its financial, operational, or other activities. Management confirmed that necessary actions will be taken to defend the case before the appellate authority.

What This Means

While the monetary value of the penalty is relatively contained, the finding highlights compliance scrutiny on input tax credit mechanisms, which are critical for cash flow management in manufacturing and food processing sectors. The company’s intent to appeal suggests it disputes the authority’s assessment of the ITC eligibility. Investors should monitor subsequent filings for updates on the appeal process and any potential additional liabilities or interest charges that may arise during litigation.

A notable block trade was recorded on the National Stock Exchange (NSE) for patanjali foods , with approximately 6,04,839 shares transacted in a single deal. The trade was executed at Rs. 342.60 per share, amounting to a total deal value of Rs. 20.72 crores.

Block Trade Details

The following table summarises the key parameters of the block trade executed 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 represents a sizeable movement of shares at a defined price point on the NSE.