JSW Dulux received a refund order from the Karnataka Goods and Services Tax department on September 7, 2026, effectively annulling a prior demand order. The resolution concludes litigation regarding a discrepancy in an e-way bill and invoice from December 2024.

The company had filed an appeal against a demand order issued on December 30, 2024, which cited a penalty of ₹9,89,064 under Section 129(3) of the SGST Act for FY25. The dispute centered on E-Way Bill No. 162008896389 and Invoice No. 118293 dated December 24, 2024.

Refund Order Details

The Joint Commissioner of LGSTO 38 in Bengaluru reviewed the company’s submissions and supporting documents. The authority issued a refund order dated September 5, 2026, which the company received on September 7, 2026.

The original penalty amount of ₹9,89,064 was waived entirely. Consequently, the initial demand order stands annulled.

What the Numbers Show

The complete waiver of the ₹9,89,064 penalty alongside the full tax refund indicates that the revenue authority accepted the company’s explanation regarding the documentation discrepancy. The inclusion of ₹92,349 in interest suggests the refund calculation accounts for the time lag between the original transaction date and the final settlement, ensuring no financial loss to the company from the procedural delay.

JSW Dulux Limited received a show cause notice from the Gujarat GST Department on September 1, 2026, alleging input tax credit (ITC) disallowance. The notice cites a total liability of ₹9,294 for the period between April 2020 and March 2022.

The company disclosed the development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notice was issued by the Superintendent (A.E) CGST, Ahmedabad North, under Section 122 of the CGST Act/Rules, 2017.

Dispute Details

The scrutiny covers the financial years from April 2020 to March 2022. The department has proposed the following breakdown for the claimed liability:

Management Response

JSW Dulux stated that the matter is currently at the show cause notice stage. The company noted that it is open for further submissions before the relevant authorities. Management confirmed it is in the process of responding to the notice within the stipulated timeline.

What the Numbers Show

The penalty amount equals the tax amount exactly, indicating a standard statutory penalty structure applied to the disputed tax value. With a total exposure of only ₹9,294, the financial impact on the listed entity’s balance sheet is negligible relative to typical corporate liabilities, suggesting this is likely a procedural compliance matter rather than a material fiscal risk.