Patanjali Foods gets Rs 80.37 lakh GST penalty from Rajasthan

MUMBAI: Patanjali Foods has found itself adding another regulatory entry to its ledger—but says the bill won’t dent the balance sheet. The FMCG and edible oils company has received a GST order from the Rajasthan tax department involving the reversal of input tax credit (ITC), excess or wrongly availed ITC, along with a penalty of Rs 80.37 lakh, according to a stock exchange filing on Wednesday.

The order has been issued by the Office of the Deputy Commissioner of the Rajasthan tax department under the provisions of the Goods and Services Tax (GST) laws.

Patanjali Foods said it does not expect any financial liability beyond the penalty amount of Rs 80.37 lakh, adding that the order is not expected to have any impact on the company’s financial, operational or other business activities.

“The Company does not expect any financial liability except to the extent of said penalty amount of Rs 80,37,898. It will not have any impact on the financial, operational and other activities of the Company,” the company said in its filing.

The company added that it intends to challenge the order before the appellate authority and will take the necessary legal steps to defend its case.

The latest development comes close on the heels of another regulatory action disclosed by the company. Last week, Patanjali Foods informed exchanges that the Office of the Assistant Commissioner of Food Safety, Kottayam, had ordered the recall of a specific batch of wheat flour after tests found chlorpyriphos pesticide residue exceeding the prescribed maximum tolerance limit.

At the time, the company maintained that the food safety action would have no material financial or operational impact, apart from the value of the affected batch.

With two regulatory developments surfacing within days, Patanjali Foods has sought to reassure investors that neither issue is expected to materially affect its overall business. While the company prepares to contest the GST order, it continues to maintain that both matters remain limited in financial scope rather than indicative of broader operational concerns.

Source : https://indiantelevision.com/mam/patanjali-foods-gets-rs-80-37-lakh-gst-penalty-from-rajasthan/