DIC India Limited has received a GST demand order of ₹6.61 lakh from tax authorities in Uttar Pradesh for the financial year 2021-22. The company disclosed this development on December 31, 2025, under SEBI regulations regarding material events.

GST Demand Details

The demand order was issued by the Assistant Commissioner (in-situ), CGST-Range 23, Division V, Noida, under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017. The total demand comprises two components:

Nature of Alleged Violation

The demand relates to alleged non-payment of GST against recovery of Research & Development fees from a foreign entity through the issuance of debit notes during FY 2021-22. The tax authorities have identified this as a contravention under the GST regulations.

Company's Response and Impact

DIC India Limited has stated that there is no impact on the financial, operational, or other activities of the company beyond the mentioned demand amount. The company is currently conducting a detailed review of the order and will decide on the next steps after comprehensive analysis.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30(6) read with Para B of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company received the demand order on December 31, 2025, and promptly informed the stock exchanges including BSE, NSE, and The Calcutta Stock Exchange.

Key Timeline

The company has indicated it will take appropriate action after completing its review of the demand order and assessing the merits of the case.

India has achieved a significant economic milestone by becoming the world's fourth-largest economy with a GDP of $4.18 trillion, surpassing Japan in the global rankings. The country is now positioned to overtake Germany and claim the third spot by 2030, cementing its status as the world's fastest-growing major economy. This remarkable performance has created what analysts describe as a rare 'Goldilocks' macroeconomic environment, characterized by high growth coupled with low inflation.

Exceptional Q2 Performance Drives Growth Optimism

India's economy demonstrated exceptional strength in the July-September quarter of FY25, expanding by 8.2% and marking the fastest growth in six quarters. This robust performance was primarily driven by strong manufacturing and services output, significantly exceeding expectations and previous quarters.

The 8.2% growth rate exceeded even sophisticated economic estimates, prompting Chief Economic Advisor V Anantha Nageswaran to announce that India's full-year economic growth projection would likely be revised upward to 7% or higher from the current estimate of 6.5%.

Upward Revisions Across Economic Forecasts

The strong Q2 performance has triggered widespread upward revisions in growth forecasts from multiple institutions. The Reserve Bank of India's Monetary Policy Committee raised its FY26 economic growth estimate to 7.3% from 6.8% earlier, while most economists and brokerages project India's GDP growth for FY26 above 6.9%.

Fitch Ratings specifically raised its forecast for India's GDP growth for FY26 to 6.9% from 6.5%, citing robust domestic demand and expecting strong consumer spending along with looser financial conditions to support investment.

Structural Factors Supporting Long-term Growth

According to Neelkanth Mishra, Chief Economist at Axis Bank and Head of Global Research at Axis Capital, India's growth trajectory for FY27 is expected to remain above trend. The projected 7.5% real GDP growth for FY27 will be driven by several key factors:

• Structural and regulatory reforms
• Lower borrowing costs
• Accelerated capital formation
• Cyclical boost from policy easing
• More moderate fiscal headwinds
• Monetary easing providing tailwinds

The robust domestic demand, supportive interest rates, tax cuts, and strong government spending have collectively contributed to this decadal high GDP growth performance.

Historic Disinflation Creates Favorable Conditions

India is experiencing significant disinflation alongside strong growth, creating ideal economic conditions. The RBI's monetary policy panel significantly lowered the overall inflation projection for FY26 to 2% from 2.6% estimated earlier as the economy continues to witness rapid disinflation.

The October inflation rate of 0.25% marked a historic low since the Consumer Price Index series was introduced. Axis Bank forecasts that FY27 headline inflation will average 4%, meeting the RBI's target. The median inflation has remained stable near 3% for 18 months, signaling persistent economic slack.

Economic Outlook and Future Projections

Several positive indicators support the optimistic economic outlook. The unemployment rate decreased to 4.7% in November from 5.2% in October, reaching the lowest level since April. The nominal GDP grew 8.7% compared to 8.3% in the year-ago period, while lower inflation has narrowed the gap between nominal and real growth.

Axis Bank expects the current account deficit to widen slightly to 1.2% of GDP in FY26 and 1.3% in FY27, while the surge in capital outflows seen in Q2/Q3 of FY26 is expected to abate. HDFC Bank's principal economist Sakshi Gupta suggests that consumer tax cuts and ample food supply could lead to inflation averaging below 3% for the remaining fiscal year, potentially providing room for additional RBI rate cuts if growth momentum slows post-festive season.

Chief Economic Advisor V Anantha Nageswaran indicated that India's economy is expected to cross the $4 trillion mark in the current fiscal year, representing another significant milestone in the country's economic journey toward becoming a global economic powerhouse.