Patanjali Foods receives show-cause notice from GST Authorities in Tamil Nadu for discrepancies in Turnover reported in Returns for FY23, proposed Tax Demand exceeds ₹ 1,352 crores.
As the show cause notice has been issued by the Office of the Assistant Commissioner (ST), Royapuram (C) Assessment Circle, North Division, Chennai, under Section 73 of the CGST and Tamil Nadu GST Acts, show cause notice for proposed levy of GST of Rs 1,352.92 crores [ Rs 676.46 crores each of SGST and CGST] and imposition of penalty of Rs 135.29 crores plus interest @ 18% on delayed payment, Patanjali Foods, hereinafter referred to as “the Company”, shall reply to the same within the stipulated time period with the help of its Tax Advisors.
The discrepancies noticed by the Authority in the returns filed by the Company are inter alia the differences and anomalies found in the turnover disclosed in the GSTR-3B returns filed by the Company for the Financial Year 2022-23 and the turnover disclosed in the GSTR-7 returns filed by the TDS Deductors for the Financial Year 2022-23.
“On comparison of the Turnover reported in GSTR-3B (the monthly returns of outgoing supplies of goods and services by taxable persons) filed by the Company with the Turnover reported in GSTR-7 (returns of paid TDS/ TCS) filed by the Deductors of TDS for the year 2022-23, the authority found differences and anomalies in turnover,” they said.
The proposed GST Liability including Service Tax of Rs. 1,352.92 crores (inclusive of service tax) comprises of Rs. 676.46 crores each of SGST and CGST plus penalty of Rs. 135.29 crores plus applicable interest @ 18% on delayed payment.
The Company along with its Tax Advisors is working to respond to such Show Cause Notice within stipulated time frame and the Company firmly believes that it has sufficient basis to establish its position in such proceedings before GST authorities.
“However, as per our preliminary examination we have sufficient basis to refute the allegations made in the SCN and we shall be able to file suitable reply within stipulated time frame after consulting our Tax Advisors.
There are some discrepancies which are required to be reconciled by GST authorities by comparing the GST returns filed by Patanjali Foods with the returns filed by other TDS deductors.