Akzo Nobel India Limited has received a GST order from the Haryana GST Department, relating to a pending litigation matter concerning Input Tax Credit (ITC) disallowance. The order demands a total of ₹39.09 lakh for the period from April 2018 to March 2021.

GST Dispute Background

The dispute originated when the company received a show cause notice from the Haryana GST Department. The notice covered the period from April 2018 to March 2021 and mentioned disallowance of ITC due to Input Service Distributor (ISD) mismatch under section 74 of the CGST/SGST Act, 2017.

Order Details and Financial Impact

The Assistant Commissioner, Gurugram, Haryana GST Department, issued the order, which was received by the company. The aggregate demand amount has been reduced from the initial ₹49.73 lakh to ₹39.09 lakh.

The revised demand structure includes:

• Tax amount: ₹19.55 lakh
• Penalty amount: ₹19.55 lakh
• Interest: As applicable thereon

Company Response and Next Steps

Akzo Nobel India had previously responded to the show cause notice along with supporting documents within the stipulated time limit. Following the receipt of the order, the company is currently in the process of reviewing the decision and preparing its response.

The order remains open for further submissions to the relevant authorities, and the company is working to respond within the indicated timeframe.

Regulatory Compliance

The company has disclosed this update in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI circular SEBI/HO/CFD/CFDPoD1/P/CIR/2023/123 dated July 13, 2023. The disclosure ensures transparency regarding pending litigation matters that could impact the company's operations.

Akzo Nobel India Limited has received a favorable resolution in its pending litigation with the Gujarat GST Department, with the tax authority completely dropping a demand of ₹4.36 lakh including interest and penalty. The company informed stock exchanges about this development on December 26, 2025, following receipt of the order from the Gujarat GST Department.

Case Background and Timeline

The litigation originated from a show cause notice issued by the Gujarat GST Department on June 27, 2025, concerning the period from April 2018 to March 2019. The notice alleged issuance of duplicate e-way bills against the same invoice under Section 74 of the CGST/SGST Act, 2017.

Company Response and Resolution

Akzo Nobel India responded to the show cause notice along with supporting documents within the prescribed time limit. The Superintendent of Ahmedabad Gujarat GST Department reviewed the company's reply and supporting documentation before issuing the final order.

The order dated December 23, 2025, was received by the company on December 26, 2025, at 12:30 PM. According to the order, the tax demand including interest and penalty has been completely dropped, providing full relief to the company.

Financial Impact

Regulatory Compliance

The company disclosed this update under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in compliance with SEBI circular SEBI/HO/CFD/CFDPoD1/P/CIR/2023/123 dated July 13, 2023. This follows the company's earlier disclosure on June 28, 2025, when the initial show cause notice was received.

The resolution of this matter eliminates any potential financial liability for Akzo Nobel India related to the alleged duplicate e-way bill issuance during the specified period. The company's proactive response with appropriate supporting documentation appears to have successfully addressed the department's concerns, resulting in the complete withdrawal of all demands.