Patanjali Foods has received a show-cause notice from the GST Intelligence Department asking the company to explain why tax credits worth Rs 27.46 crore cannot be refunded. Patanjali Ayurved Group, led by yoga guru Ramdev, which is mainly in the edible oil business, received a notice from the Information Bureau GST Chandigarh division on April 26, according to the company's regulatory filing.

"The company has been issued a show cause notice... The company, its officers and authorized signatories are asked to explain why input tax credit (including interest) amounting to Rs 27,46,14,343 cannot be refunded. Penalty?" the company said.

The department requires Section 74 of the Central Goods and Services Act, 2017 and Section 20 of the Integrated Goods and Services Tax (IGST) Act, 2017, Uttarakhand State Goods and Services Act, 2017. and other applicable provisions are cited.

"Patanjali Foods stated that currently, the authorities have only given a show cause notice and the company will take all required actions to protect itself during the case proceedings with the authorities."

The expected financial impact cannot be determined until the process is complete,” the company added.

Patanjali Foods announced last week that it would assess offers to purchase non-food companies from the promoter group Patanjali Ayurved.

Patanjali Foods said in a regulatory filing that its board discussed an initial proposal received from Patanjali Ayurved Ltd to sell its non-food business.

Established in 1986, Patanjali Foods Ltd (formerly Ruchi Soya Industries Ltd) is a leading FMCG player.

The business is involved in the edible oils, food, FMCG, and wind power industries under different brands like Patanjali, Ruchi Gold, and Nutrela.

  Patanjali Ayurved acquired Ruchi Soya through bankruptcy proceedings and later changed its name to Patanjali Foods Ltd.

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