In the realm of commerce, Patanjali Foods finds itself entangled in a quandary, as the GST intelligence wing serves them a formidable notice, demanding justification for the retention of an input tax credit totaling a substantial sum of Rs 27.46 crore. The venerable institution helmed by the illustrious Yoga guru Ramdev, Patanjali Ayurved Group, primarily immersed in the realm of edible oils, finds itself in receipt of this summons from the Directorate General of GST Intelligence, Chandigarh Zonal Unit, as per the company’s filing with regulatory authorities on April 26.
The missive received by the esteemed company necessitates a comprehensive response, summoning its officers and designated signatories to elucidate why the aforementioned sum of input tax credit ought not to be reclaimed, accompanied by the levying of interest and potential penalties, as articulated by the company itself.
Citing the statutes enshrined within Section 74 and other pertinent provisions of the Central Goods and Services Act, 2017, along with the Uttarakhand State Goods and Services Act, 2017, in conjunction with Section 20 of the Integrated Goods and Services Tax (IGST) Act, 2017, the department initiates this inquiry. Patanjali Foods, however, maintains that the current juncture merely witnesses the issuance of a show cause notice, with the company poised to undertake all requisite measures to mount a robust defense before the competent authority.
The financial ramifications remain nebulous, shrouded in uncertainty until the culmination of these deliberations, as articulated by the company. Notably, recent disclosures from Patanjali Foods allude to its contemplation of an overture to acquire the non-food sector of its progenitor, Patanjali Ayurved. Disclosed through regulatory channels, the board of Patanjali Foods has convened to deliberate over the initial overture extended by Patanjali Ayurved Ltd for the potential divestment of its non-food business assets to the former.
Having originated in 1986, Patanjali Foods Ltd, formerly known by the appellation Ruchi Soya Industries Ltd, assumes a prominent position within the fast-moving consumer goods (FMCG) landscape. The enterprise spans across the spheres of edible oils, consumables, FMCG products, and wind power generation, championing an array of brands such as Patanjali, Ruchi Gold, Nutrela, among others. Notably, Patanjali Ayurved orchestrated the acquisition of Ruchi Soya through the channels of insolvency, subsequently rechristening the entity as Patanjali Foods Ltd.