Patanjali Foods Limited has received a significant GST order from tax authorities, resulting in a penalty of Rs 3,86,78,700. The company disclosed this development through a regulatory filing under SEBI's Listing Obligations and Disclosure Requirements Regulations, 2015.

GST Order Details

The order was issued by the Office of the Commissioner of Central Goods and Service Tax and Central Excise - Kutch (Gandhidham) and received by the company on March 16, 2026. The original order was dated March 13, 2026, and was communicated through email and uploaded on the GST portal.

Nature of Non-Compliance

The GST order addresses multiple compliance issues identified by the tax authorities across several financial years. The primary concerns relate to Input Tax Credit (ITC) irregularities and Reverse Charge Mechanism (RCM) non-compliance.

Key Violations Identified

• Excess ITC Availment: The authority found excess availment of Input Tax Credit during 2019-20, 2020-21, 2021-22, and 2022-23
• Cess ITC Issues: Improper availment of Cess Input Tax Credit during 2022-23
• RCM Non-Payment: Non-payment of Reverse Charge Mechanism on a transaction during 2021-22
• ITC Reversal: Order mandates reversal of Cess Input Tax Credit for the specified periods

Financial Impact Assessment

Company's Response Strategy

Patanjali Foods has indicated its intention to challenge the order through proper legal channels. The company stated it will take necessary action to defend its case before the appellate authority, suggesting confidence in its position regarding the alleged violations.

The disclosure was signed by Company Secretary Ramji Lal Gupta from the company's Indore office, ensuring compliance with regulatory requirements for timely disclosure of material developments to stakeholders and stock exchanges.

Patanjali Foods Limited has announced two major agreements with its promoter group company Patanjali Ayurved Limited (PAL) to acquire strategic manufacturing assets worth ₹750.00 crore. The transactions, disclosed under Regulation 30 of SEBI's Listing Obligations and Disclosure Requirements Regulations, 2015, are designed to strengthen the company's manufacturing capabilities and support future growth.

Land Acquisition Agreement

The company has entered into an "Agreement To Transfer Leasehold Rights" with PAL to acquire leasehold rights on a substantial land parcel. The transaction involves acquiring rights to 4,00,016 square meters of land, including partially constructed building structures covering 69,900 square meters of built-up area.

The land parcel forms part of a larger 5,00,016 square meters area originally allotted to PAL by the Yamuna Expressway Industrial Development Authority (YEIDA). The transfer is subject to approvals from YEIDA and other relevant authorities as required.

Plant and Machinery Acquisition

Simultaneously, Patanjali Foods has signed a "Plant and Machinery Transfer Agreement" with PAL for acquiring biscuit manufacturing equipment. The plant and machinery, currently installed at the building on the aforementioned plot, will be transferred for ₹76.10 crore.

Strategic Rationale and Approvals

Both transactions are strategically aligned with the company's long-term objectives of strengthening its manufacturing base. The acquisitions are expected to enhance operational efficiencies, improve production capabilities, and enable the company to better cater to its growing business requirements.

The Audit Committee and Board of Directors approved both agreements in their respective meetings held on March 14, 2026. The transactions are classified as related party transactions, with the company maintaining that they have been undertaken on an arm's length basis.

Related Party Transaction Details

PAL holds a 29.61% shareholding in Patanjali Foods Limited and is classified as a promoter group company. Both agreements fall under related party transactions as defined by regulatory requirements, and the company has confirmed that the transactions are conducted at arm's length pricing.

Regulatory Compliance

The disclosure has been made in accordance with Regulation 30 read with Para B of Part A of Schedule III of the SEBI Listing Regulations and SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The company has committed to making this information available on its website at www.patanjalifoods.com for stakeholder reference.