Patanjali Foods GST demand of Rs 1352 crore dropped

Patanjali Foods Limited successfully resolved a tax dispute after the Office of the Assistant Commissioner (ST), Royapuram Assessment Circle, Chennai, dropped the GST demand proceedings initiated against the company. The authority accepted the company's submissions regarding alleged discrepancies in GST returns for FY 2022-23, concluding that no short payment of tax exists. This decision removes a potential financial liability of Rs 1352,92,49,106 plus interest that was initially claimed by the department.

The company had received a show cause notice dated May 25, 2026, under Section 73 of the Tamil Nadu Goods and Services Tax Act, 2017, and the Central Goods and Services Tax Act, 2017. The notice alleged discrepancies in the GST returns for the financial year 2022-23 and demanded the specified amount towards tax and interest. Following the examination of the company's reply and records, the authority determined that the proposed demand was not sustainable.

Order Details and Closure

In an order received on June 12, 2026, the authority rectified an error apparent on record under Section 161 of the Tamil Nadu Goods and Services Tax Act, 2017. The proceedings initiated vide DRC-01 have been closed, and the matter stands concluded. The company confirmed that there is no financial impact resulting from this order.

The disclosure was submitted to the exchanges in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Ramji Lal Gupta, Company Secretary, verified the accuracy of the information provided.

Key Disclosures

Particulars	Details
Authority	Office of the Assistant Commissioner (ST), Royapuram Assessment Circle, Chennai
Period under Scrutiny	FY 2022-23
Original Demand	Rs 1352,92,49,106 plus interest
Outcome	Proceedings dropped; matter treated as closed
Financial Impact	None

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.59%	+0.62%	-7.67%	-23.37%	-23.86%	+4.99%

Patanjali Foods finds itself under heightened regulatory scrutiny on two fronts — a notice from the Maharashtra Food and Drug Administration (FDA) over promotional claims made about its Karela Jamun Juice product, and a separate development at the Bombay High Court where the state has assured it will halt raids on Patanjali in a case involving misleading Ayurvedic labelling.

Maharashtra FDA Notice Over Karela Jamun Juice

The Maharashtra FDA issued a notice to Patanjali Foods in connection with specific promotional claims associated with its Karela Jamun Juice. The notice calls upon the company to address the concerns raised by the regulatory body, and a possible product recall is also under consideration as part of the regulatory proceedings. The key details of the regulatory action are outlined below:

Parameter:	Details
Company:	Patanjali Foods
Regulatory Authority:	Maharashtra Food and Drug Administration (FDA)
Product Under Scrutiny:	Karela Jamun Juice
Nature of Action:	Notice over promotional claims
Possible Consequence:	Product recall

The company is expected to respond to the Maharashtra FDA's notice and take requisite steps to resolve the issues flagged by the authority.

Bombay High Court: State Assures Halt on Raids

In a separate but related regulatory development, the state has given an assurance to the Bombay High Court that it will halt raids on Patanjali Foods in a case concerning misleading Ayurvedic labelling. This development adds to the growing regulatory challenges faced by the company, as authorities at multiple levels examine the accuracy and compliance of its product claims and labels.