JSW Dulux has received a Show Cause Notice from the Delhi GST Department alleging a liability of ₹52,68,358 due to the disallowance of Input Tax Credit (ITC). The notice, issued under Section 74 of the CGST Act/Rules, 2017, was received by the company on August 5, 2026, at 9:00 am. This regulatory action highlights potential compliance risks related to ITC claims over a four-year period, requiring management to allocate resources for legal defense and potential cash outflows if the disallowance is upheld.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Circular no. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/120 dated July 13, 2023. Rajiv L. Jha, General Counsel and Company Secretary, signed the intimation submitted to the BSE and NSE on August 5, 2026.

Breakdown of Alleged Liability

The total quantum of claims mentioned in the notice amounts to ₹52,68,358. The breakdown of this liability is as follows:

The dispute originates from a GST Scrutiny conducted by the Superintendent, Delhi West, Delhi GST Department. The scrutiny focused on the period from April 2020 to March 2024. The core allegation is the disallowance of Input Tax Credit claimed by the company during these fiscal years.

Management Response and Next Steps

The company stated that the notice is open for further submissions before the relevant authorities. JSW Dulux is in the process of responding within the stipulated time frame mentioned in the notice. No financial provision has been disclosed in relation to this specific notice, as the outcome remains pending further submissions and adjudication.

What the Numbers Show

The alleged liability of ₹52.68 lakhs is primarily driven by the tax component of ₹52.22 lakhs, which constitutes over 99% of the total claimed amount. The interest component of ₹46,254 is negligible in comparison, suggesting that the primary contention is the validity of the credit claims rather than delayed payments. Since the penalty is listed as "as applicable," the final financial impact could increase depending on the authority's determination of intent or negligence regarding the ITC disallowance.

The Board of Directors of JSW Dulux Limited will consider a proposal to alter its share capital through the sub-division or split of existing equity shares during a meeting scheduled for August 11, 2026. The company, formerly known as Akzo Nobel India Limited, aims to enhance liquidity and broaden investor participation by reducing the face value of its shares, pending approval from shareholders and relevant regulatory authorities.

In addition to the capital structure alteration, the Board will review and approve the unaudited Standalone and Consolidated Financial Results for the quarter ended June 30, 2026. The decision on the specific manner of the share split rests with the Board, which must also secure necessary statutory approvals under applicable laws before implementation.

Key Agenda Items

The meeting agenda includes critical corporate governance and financial disclosures:

Trading Window Status

As communicated in a previous filing dated June 26, 2026, the trading window for dealing in securities of JSW Dulux Limited remains closed for Designated Persons and their immediate relatives. This restriction has been effective since July 1, 2026. The trading window is scheduled to re-open forty-eight hours after the declaration of the unaudited financial results for the quarter ended June 30, 2026.

Regulatory Compliance

This intimation is issued under Regulation 29 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The update serves as a continuation of the earlier notification dated July 30, 2026, which initially announced the board meeting. The full text of the intimation is available on the company's website at www.jswdulux.com for public access and record-keeping purposes.