Diffusion Engineers Limited has informed the Exchange about Intimation under Regulation 30 of SEBI (LODR) Regulations, 2015 Receipt of Order from GST Authorities
DIFFNKG · price
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Diffusion Engineers has received an order dated March 24, 2026 from the Assistant Commissioner of Central GST & Central Excise, Nagpur, demanding ₹72.14 lakh in tax on alleged excess Input Tax Credit (ITC) availed during FY 2019-20, along with applicable interest and an equivalent penalty of ₹72.14 lakh under Section 74 of the CGST Act, 2017. The combined potential exposure, including tax, interest, and penalty, could be around ₹1.44 crore or more. The company received the order on March 25, 2026 and plans to challenge it before the appropriate authority, stating it believes the demand is not sustainable. Management has stated this will not have any material impact on its financial position, operations, or other activities.
The financial impact is relatively small for the company, and management has downplayed its significance, but the stock could see a mild negative reaction in the short term. Investors should monitor the appeal outcome, as a sustained order could affect financials, though the company is confident of winning the challenge.