Patanjali Faces Double Blow: DGCI Imposes Rs. 27.5 Crore Penalty

In a significant setback for Patanjali, the Directorate General of GST Intelligence (DGGI) in Chandigarh has levied a substantial penalty of Rs 27.5 crore on Patanjali Foods for an irregularity related to Input Tax Credit (ITC). This development comes just a day after the Uttarakhand government suspended licenses for 14 products sold by the Ramdev-led Patanjali Ayurved and Divya Pharmacy, including popular items like Swasari Gold, Mukta Vati Extra Power, and BP Grit.

The penalty imposed by DGGI Chandigarh is linked to the identification of a Rs 20 crore irregularity in ITC, according to GST officials. They explained that in cases of fake ITC claims, a penalty can be imposed up to the amount of the ITC claim, along with interest. In this instance, the erroneous ITC claim was Rs 20 crore, leading to a penalty amount of Rs 27.5 crore, inclusive of interest, resulting in a total penalty of Rs 47.5 crore. Despite efforts by TOI, Patanjali officials declined to comment on the matter.

Simultaneously, the legal conflict escalated as Uttarakhand suspended licenses for 14 Patanjali products, including those mentioned earlier. The state government also requested the formula for these drugs from Patanjali. S K Tijarawala, the media in-charge for Patanjali Ayurved, stated to TOI, “We will respond to the notice issued by the state government and pursue legal options regarding the actions taken against us.”