Diffusion engineers has received a GST demand order from tax authorities requiring recovery of ₹72,13,794/- for alleged excess Input Tax Credit (ITC) availment during the financial year 2019-20. The company disclosed this development through a regulatory filing under Regulation 30 of SEBI listing regulations.

GST Order Details

The Assistant Commissioner, Central GST and Central Excise, Division-Hingna, Nagpur-I issued the order dated March 24, 2026, which was received by the company on March 25, 2026. The order was passed under Section 74 of the Central Goods and Services Tax Act, 2017.

Financial Implications

The GST order imposes multiple financial obligations on the company:

• Primary Demand: ₹72,13,794/- for alleged excess ITC availment
• Interest: Applicable interest under Section 50 of the CGST Act on the tax demand
• Penalty: ₹72,13,794/- under Section 74 of the CGST Act

The total financial impact includes both the principal demand and penalty amount, along with applicable interest charges.

Company's Response Strategy

Diffusion Engineers is currently evaluating the order and has announced its intention to challenge the proposed demand and penalty before the appropriate authority. The company's assessment indicates that the demand is not sustainable based on their review of the case.

Impact Assessment

According to the company's preliminary evaluation, the GST demand will not have any material impact on its financial position, operations, or other business activities. This assessment is based on the company's belief that the demand lacks merit and can be successfully contested through proper legal channels.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company provided comprehensive details as required under the regulatory framework, including the nature of the order, financial implications, and expected impact on business operations.

Diffusion Engineers Limited has successfully completed its scheduled investor meeting and plant visit with Nirbhay Investment Opportunities Fund on March 24, 2026. The company issued a post-intimation notice to both the National Stock Exchange of India Limited and BSE Limited on the same day, confirming the completion of the engagement.

Post-Meeting Regulatory Compliance

The post-intimation was made pursuant to Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Part A of Schedule III of the Listing Regulations. The management meeting and plant visit was successfully conducted on Tuesday, March 24, 2026, as originally scheduled.

Information Disclosure Compliance

The company has confirmed that no Unpublished Price Sensitive Information (UPSI) was shared during the visit, maintaining strict compliance with regulatory disclosure norms. This approach aligns with Diffusion Engineers Limited's Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information.

Company Leadership and Certification

The post-intimation notice was digitally signed by Chanchal Jaiswal, Company Secretary and Compliance Officer (ICSI Membership no. A67136), on March 24, 2026. The company maintains its Great Place To Work certification and IMS certification under TUV SUD ISO 14001 standards.

Corporate Information

Diffusion Engineers Limited operates from its registered office at T-5 & 6, M.I.D.C., Hingna Industrial Area, Nagpur - 440016, Maharashtra. The company maintains an extensive branch network across major cities including Ahmedabad, Chennai, Chittorgarh, Faridabad, Jamshedpur, Kolkata, Pune, Raipur, and Secunderabad, with GSTIN: 27AAACD8008L1ZK.