Akzo Nobel India Receives GST Order with Reduced Demand of ₹2.46 Crores from Karnataka Department

Akzo Nobel India Limited has received a GST order from the Karnataka GST Department, marking a significant development in the ongoing litigation that began with a show cause notice in September 2025. The order, dated December 29, 2025, and received by the company on December 30, 2025, shows a substantial reduction in the demand amount compared to the initial notice.

GST Demand Reduction Details

The final order shows a considerable decrease in the total demand amount. The comparison between the initial show cause notice and the final order reveals the extent of this reduction:

Parameter	Initial Show Cause Notice	Final Order	Reduction
Total Demand	₹14,96,19,736	₹2,45,61,915	₹12,50,57,821
Tax Amount	₹9,17,69,407	₹1,38,13,025	₹7,79,56,382
Interest Amount	₹5,78,50,329	₹93,67,588	₹4,84,82,741
Penalty Amount	As applicable	₹13,81,302	-

Background of the GST Litigation

The litigation originated from a show cause notice issued by the Karnataka GST Department on September 30, 2025. The notice pertained to the disallowance of input tax credit under section 73 of the CGST/SGST Act, 2017, covering the period from April 2021 to March 2022.

Following the receipt of the show cause notice, Akzo Nobel India submitted its response along with supporting documents within the stipulated time limit. The Deputy Commissioner of the Large Taxpayers Unit (LTU) of the Karnataka GST Department reviewed the company's reply before issuing the final order.

Current Status and Next Steps

The order remains open for further submissions to the relevant authorities. The company is currently in the process of preparing its response within the timeframe indicated by the GST department. This development represents a significant improvement from the initial demand, though the matter remains under active consideration.

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. This follows the company's earlier disclosure made on October 1, 2025, regarding the pending litigation.

The substantial reduction in the demand amount from ₹14.96 crores to ₹2.46 crores indicates a favorable development for the company, though the final resolution of the matter is still pending based on further submissions and departmental review.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.12%	-0.85%	-9.52%	-7.63%	-7.05%	+30.34%

Akzo Nobel India Limited has received a GST order from the Bihar GST Department with a substantially reduced demand compared to the initial show cause notice, marking a significant development in the ongoing tax litigation.

GST Order Details

The company received an order dated December 26, 2023, from the Deputy Commissioner of State Tax, Patna, Bihar GST Department on December 28, 2023. The order addresses the disallowance of input tax credit under sections 73 of CGST/SGST Act, 2017 for the period from April 2021 to March 2022.

Component	Initial Notice Amount	Final Order Amount
Tax	₹13,15,750.00	₹1,20,846.00
Interest	₹8,01,418.00	₹79,138.00
Penalty	₹1,86,768.00	₹30,000.00
Total Demand	₹23,03,936.00	₹2,29,984.00

Timeline of Events

The litigation process began when Akzo Nobel India received a show cause notice from the Bihar GST Department on September 10, 2023. The company responded promptly by submitting its reply along with supporting documents within the prescribed time limit.

Key milestones in the case include:

September 10, 2023: Show cause notice received
September 11, 2023: Initial disclosure made under SEBI regulations
December 26, 2023: GST order issued by authorities
December 28, 2023: Order received by the company at 9:30 PM

Regulatory Compliance

Akzo Nobel India has updated stakeholders about this development in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure follows SEBI circular SEBI/HO/CFD/CFDPoD1/P/CIR/2023/123 dated July 13, 2023, which requires regular updates on pending litigation until conclusion or resolution.

Next Steps

The GST order remains open for further submissions to the relevant authorities. Akzo Nobel India is currently preparing its response to the order and will submit it within the timeframe indicated by the Bihar GST Department. The company continues to engage with the tax authorities as part of the ongoing litigation process.

The significant reduction in the demand amount from ₹23.04 lakh to ₹2.30 lakh represents a favorable development for the company in this GST litigation matter.