Akzo Nobel India Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
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Akzo Nobel India has received a Show Cause Notice from the Haryana GST Department (Assistant Commissioner, Division-East, Gurugram) under Section 74 of the CGST Act for the period FY2018-19 to FY2020-21. The notice alleges disallowance of Input Tax Credit (ITC) due to an Input Service Distributor (ISD) mismatch. The total tax demand is ₹49.74 lakhs, with applicable interest and penalty to be added on top. The company is in the process of preparing its response and will submit it within the stipulated time. The disclosure is made under SEBI Listing Regulations to keep investors informed of pending litigation.
The financial exposure is relatively small (around ₹50 lakhs in tax, before interest and penalty) for a company of Akzo Nobel India's size, so the direct hit is limited. However, if interest and penalty are added, the final amount could be meaningfully higher, and an adverse ruling could set a precedent for similar GST scrutiny cases.