Akzo Nobel India Limited has received a significant GST demand order from the Maharashtra GST Department, marking an escalation in an ongoing tax dispute that originated in mid-2025. The company disclosed this development through a regulatory filing on January 8, 2026, providing stakeholders with updated details on the pending litigation.

GST Demand Details

The Maharashtra GST Department's order, dated December 23, 2025, and received by the company on January 7, 2026, contains the following financial implications:

The dispute centers around allegations of issuing duplicate e-way bills against the same invoice during the period from April 2018 to March 2019, falling under sections 74 of the CGST/SGST Act, 2017.

Timeline of Events

The litigation process began when the company received a show cause notice from the Maharashtra GST Department on July 1, 2025. The original notice contained a smaller demand of ₹2,25,604, comprising only the tax component with applicable interest and penalty.

Following the show cause notice, Akzo Nobel India responded with supporting documents within the prescribed time limit. However, after reviewing the company's response, the Superintendent of Division-Belapur, Mumbai, Maharashtra GST (ISD) Department issued the current order, effectively doubling the financial exposure by adding a penalty amount equal to the tax demand.

Company's Response Strategy

The company has indicated that the order remains open for further submissions to the relevant authorities. Akzo Nobel India is currently in the process of reviewing the order and has committed to responding within the timeframe specified by the GST department.

The regulatory filing confirms that this litigation does not involve any key management personnel, promoters, or ultimate persons in control of the company, limiting the scope to operational tax compliance matters.

Regulatory Compliance

This update was filed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in compliance with SEBI circular SEBI/HO/CFD/CFDPoD-1/P/CIR/2023/123 dated July 13, 2023. The disclosure follows the company's initial announcement of the pending litigation on July 2, 2025, demonstrating adherence to continuous disclosure requirements for material developments.

Akzo Nobel India Limited has received a favorable outcome in its GST litigation matter, with the Maharashtra GST Department completely dropping a significant tax demand. The company informed stock exchanges on January 8, 2026, about the resolution of the pending litigation that was initially disclosed on October 10, 2025.

GST Demand Details and Timeline

The litigation began when Akzo Nobel India received a show cause notice from the Maharashtra GST Department on October 9, 2025. The notice pertained to the period from April 2021 to March 2022 and involved disallowance of Input Service Distributor (ISD) input tax credit under section 73 of the CGST/SGST Act, 2017.

Company Response and Resolution

The company responded to the show cause notice within the stipulated time limit, providing comprehensive supporting documents to substantiate its position. The Deputy Commissioner of State Tax, Belapur, Maharashtra GST (ISD) Department reviewed the company's response and supporting documentation.

Following this review, the Deputy Commissioner issued an order dated December 26, 2025, which the company received on January 7, 2026, at 2:00 PM. The order brought complete relief to Akzo Nobel India, as it dropped the entire tax demand.

Order Outcome

The final order delivered a comprehensive resolution in favor of the company:

• Complete tax demand waiver: The entire amount of ₹3,94,59,459 has been dropped
• Interest waiver: All applicable interest charges have been waived
• Penalty waiver: All applicable penalties have been dropped
• Original order annulment: The original demand order stands completely annulled

Regulatory Compliance

Akzo Nobel India has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company also complied with SEBI circular SEBI/HO/CFD/CFDPoD-1/P/CIR/2023/123 dated July 13, 2023, by providing this update on the pending litigation.

The resolution of this GST matter eliminates a significant contingent liability for the company and provides clarity on its tax position for the specified period. The favorable outcome demonstrates the effectiveness of the company's documentation and compliance processes in defending its tax positions.