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.

JSW Dulux Limited announced that Hemant Sahai ceased to be an Independent Director on August 2, 2026, marking the end of his consecutive second term on the Board. The departure is a routine succession event following the completion of the maximum permissible tenure for independent directors under corporate governance norms.

The intimation was filed with the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on August 3, 2026, pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing references SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, as updated by SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

Sahai’s cessation from the Board also resulted in his exit from all associated Board committees effective end of day on August 2, 2026. His previous committee positions included:

The updated composition of the Board and its committees remains unchanged for other directors. Parth Jindal continues as Chairman, while Rajiv Rajgopal serves as Joint Managing Director and CEO. Krishna Rallapalli continues as Wholetime Director and CFO, and Rohit G Totla serves as Wholetime Director.

The remaining Independent Directors are Anil Chaudhry, Namrata Kaul, Shantanu M Khosla, and Sutapa Banerjee. Kaustubh S Kulkarni continues as a Non-Executive Director. The Board structure maintains compliance with regulatory requirements for independent representation across key oversight functions.

Updated Committee Composition

Following Sahai’s exit, the committee structures have been adjusted to reflect the current membership. The Audit Committee is chaired by Namrata Kaul, with Anil Chaudhry, Shantanu M Khosla, and Sutapa Banerjee serving as members.

The Nomination and Remuneration Committee is chaired by Anil Chaudhry, with Namrata Kaul, Shantanu M Khosla, and Sutapa Banerjee as members. The Corporate Social Responsibility Committee, chaired by Namrata Kaul, includes members from both executive and non-executive ranks, including Rajiv Rajgopal, Krishna Rallapalli, and Rohit G Totla.

The Risk Management Committee now consists of nine members: Namrata Kaul, Anil Chaudhry, Sutapa Banerjee, Rajiv Rajgopal, Krishna Rallapalli, Rohit G Totla, Shantanu M Khosla, Sumit Khatuja, and Dr. Kumar Iyer. The Stakeholders Relationship Committee comprises Rajiv Rajgopal and Krishna Rallapalli.