Patanjali Foods revealed on Friday that it has received a show cause notice from the Directorate General of GST Intelligence in Chandigarh concerning a tax claim totaling Rs 27.5 crore.
The notice revolves around an alleged discrepancy in input tax, which could lead to penalties under the CGST Act. In response, a spokesperson for Patanjali Foods stated, “The Company has received a Show Cause Notice from the Directorate General of GST Intelligence, Chandigarh Zonal Unit.
The Company, its Officers, and authorized signatories were asked to explain why input tax credit amounting to Rs 27,46,14,343 should not be recovered (with interest), and why penalties should not be imposed under Section 74 and other applicable provisions of the CGST Act 2017/Uttarakhand SGST Act, 2017, in conjunction with section 20 of IGST Act 2017.”
The company mentioned its intentions to vigorously defend its position before the authorities. “At this stage, only a show cause notice has been issued by the authority, and the Company will take all necessary measures to present its case before the authority. Therefore, the potential financial implications cannot be determined until the proceedings are concluded,” the filing mentioned.
Patanjali Foods reaffirmed its commitment to upholding the highest standards of corporate governance and will diligently address this issue in compliance with the law, as per the filing.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
