Patanjali Foods Limited has received a show cause notice from the Office of the Assistant Commissioner (ST), Royapuram (C) Assessment Circle, North Division, Chennai, demanding a total tax of Rs. 1352,92,49,106 plus a penalty of Rs. 135,29,24,910 for the financial year 2022-23. The notice, dated May 25, 2026, was issued under Section 73 of the Tamil Nadu Goods and Services Tax Act, 2017 and the Central Goods and Services Tax Act, 2017. The demand arises from alleged differences and anomalies identified by the tax authorities upon comparing GSTR-3B returns filed by the company with GSTR-7 returns filed by deductors.

The tax authority has demanded Rs. 676,46,24,553 each in SGST and CGST, along with a penalty of Rs. 135,29,24,910, calculated at 10% of the demand for each tax component. Additionally, the notice includes an interest charge of 18% on the CGST and SGST components. The company stated that the discrepancies were found due to alleged differences in turnover reported by the company and the deductors of TDS.

Company Response and Financial Implications

Patanjali Foods Limited is currently in the process of submitting appropriate responses in consultation with its tax advisors. The company 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 stated that it does not expect any financial liability arising from this matter.

However, the company noted that the exact financial implications cannot be determined until the completion of the proceedings. The disclosure was made to BSE Limited and National Stock Exchange of India Limited in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Breakdown of Demand

Patanjali Foods recorded three block trades on the National Stock Exchange (NSE), reflecting notable institutional-level activity in the counter. The transactions together involved a significant volume of shares transacted at prices in the Rs. 464–466.75 range.

NSE Block Trade Details

The following table summarises the key parameters of all three block trades executed on the NSE:

Transaction Overview

The first block trade on the NSE was executed for approximately 1,051,760 shares at Rs. 464.90 per share, amounting to a total transaction value of Rs. 48.90 crores. The second block trade involved approximately 1,329,806 shares transacted at Rs. 466.20 per share, with a total deal value of Rs. 62.00 crores. A third block trade was subsequently recorded for approximately 410,795 shares at Rs. 466.75 per share, amounting to Rs. 19.17 crores. Block trades of this nature are typically executed outside the regular market mechanism to facilitate large-volume transactions with minimal market impact.