Patanjali Foods on Thursday said that it had received a GST demand notice of Rs 1,352.9 crore for FY23 for allegedly under-reporting its taxable turnover for the period by Rs 7,516 crore. Denying the allegation as factually incorrect, the company said it had received the show-cause notice from the office of the Assistant Commissioner (ST), Royapuram (C) Assessment Circle, North Division, Chennai, over the alleged discrepancies.
Reconciling GSTR-3B Gap
The company said that the show-cause notice had disclosed taxable turnover amounting to Rs 8,140.63 crores in GSTR-3B returns for the period April 2022 to February 2023 whereas taxable turnover amounting to Rs. 15,656.88 crore was allegedly reflected in TDS returns filed by various deductors for the period.
This had resulted in a mismatch (of Rs 7,516 crore) for which the show-cause notice had proposed an applicable interest of 18% and a penalty of 10% on the tax demand of Rs 1,352.9 crore. The company said that it previously clarified the matter with the tax authorities via a detailed response and supporting documents.
The company said that it had duly disclosed all taxable supplies during the relevant period to Rs 2,017 crore as reflected in the GSTR-3B returns filed on the GST common portal. Further, the taxable valued reflected in TDS returns filed by deductors amounted to Rs 109.48 crore only.
Consultation and Indemnity
Patanjali Foods said it was in the process of submitting an appropriate response in consultation with its tax advisors and believes it had adequate grounds to substantiate its position before the relevant authority within the prescribed timelines.
The company also does not expect any financial liability arising from the notice, though the exact implications cannot be determined until completion of the proceedings, it added.