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.

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.

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.