AkzoNobel India Limited has informed stock exchanges about receiving a GST notice from Tamil Nadu authorities, disclosing potential financial implications of ₹5.20 lakh. The company made this disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

GST Notice Details

The notice was received from the Deputy State Tax Officer, Vellore, Roving Squad of the Tamil Nadu GST Department. The authorities issued the notice under Section 68 of the CGST Act/Rules, 2017 following a physical verification of transport documents.

Nature of Alleged Violation

The GST department conducted a physical verification of transport documents and identified alleged defects in the documentation. Based on these findings, the authorities have imposed a penalty amounting to ₹5,19,840 on AkzoNobel India.

Financial Impact and Company Response

The total liability as per the notice stands at ₹5,19,840. However, the company has clarified that this is currently at the notice stage, which remains open for further submissions before the relevant authorities.

Management's Position

AkzoNobel India's management has indicated that the company is in the process of responding to the notice within the stipulated timeframe mentioned in the GST department's communication. The company views this matter as being at the notice stage, with opportunities for further submissions and clarifications before the relevant tax authorities.

The company is preparing its response to address the allegations of transport document defects within the given timeframe.

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.