Akzo Nobel India Limited has informed stock exchanges about receiving a GST order from the West Bengal GST Department, demanding ₹67.32 crores for disallowance of input tax credit covering the period from April 2021 to March 2022.

GST Order Details

The Senior Joint Commissioner, Large Taxpayer Unit, Corporate Division, West Bengal GST Department issued an order dated December 19, 2025, which the company received on the same day at 6:30 p.m. The order follows the department's review of AkzoNobel India's response to an earlier show cause notice.

Background of the Case

The litigation stems from a show cause notice received by AkzoNobel India on October 23, 2025, covering the period from April 2021 to March 2022. The notice pertained to disallowance of Input Tax Credit (ITC) under Section 73 of the CGST/SGST Act, 2017.

The original show cause notice had demanded ₹62,75,220, comprising:

• Tax amount: ₹36,53,855
• Interest: ₹22,55,980
• Penalty: ₹3,65,385

Company's Response and Next Steps

AkzoNobel India had submitted its response to the show cause notice along with supporting documents within the stipulated time limit. However, after reviewing the company's reply, the GST department proceeded to issue the formal order with an increased demand amount.

The company has indicated that:

• The order remains open for further submissions before relevant authorities
• AkzoNobel India is in the process of responding within stipulated timelines mentioned in the order
• The matter involves ongoing litigation proceedings

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 dated July 13, 2023. This represents an update to the pending litigation matter initially disclosed on October 23, 2025.

The increase in the total demand from ₹62.75 crores to ₹67.32 crores primarily reflects higher interest calculations, while the tax and penalty components remain largely unchanged from the original show cause notice.

Akzo Nobel India Limited has received a substantial acquisition disclosure from HDFC Mutual Fund, indicating an increase in the fund house's stake to 5.85% of the company's paid-up equity share capital. The acquisition was completed on December 17, 2025, through open market purchases.

Acquisition Details

The disclosure, made under Regulation 29(1) of SEBI's Substantial Acquisition of Shares and Takeovers Regulations, 2011, reveals that HDFC Mutual Fund's aggregate holdings reached 5.85% of Akzo Nobel India's paid-up equity share capital as of the close of business hours on December 17, 2025.

Company Share Capital Structure

Akzo Nobel India's paid-up equity share capital stands at ₹45.54 crores, comprising 4,55,40,314 equity shares of ₹10.00 each. The share capital structure remained unchanged before and after the acquisition.

HDFC Mutual Fund Schemes Involved

The acquisition involved multiple HDFC Mutual Fund schemes managed by HDFC Trustee Company Limited, including:

• HDFC BSE 500 ETF
• HDFC BSE 500 Index Fund
• HDFC Children's Fund
• HDFC Housing Opportunities Fund
• HDFC Multi Cap Fund
• HDFC Non Cyclical Consumer Fund
• HDFC NIFTY 500 MULTICAP 50:25:25 INDEX FUND
• HDFC Hybrid Equity Fund
• HDFC Retirement Savings Fund - Equity Plan
• HDFC NIFTY SMALLCAP 250 ETF
• HDFC NIFTY SMALLCAP 250 INDEX FUND
• HDFC Small Cap Fund

Holdings Comparison

The fund house's position in Akzo Nobel India shows an increase from its previous holding:

Regulatory Compliance

The disclosure was made by Dinesh Bhakade, Deputy Vice President - Compliance at HDFC Asset Management Company Limited, serving as the Investment Manager for HDFC Mutual Fund. The notification was sent to both BSE Limited and National Stock Exchange of India Limited, where Akzo Nobel India's shares are listed.

This acquisition represents an increase in HDFC Mutual Fund's exposure to Akzo Nobel India, a player in the specialty chemicals and coatings industry.