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 Karnataka GST Department dated 25 June 2025, received by the company on 27 June 2025. The notice pertains to disallowance of Input Tax Credit (ITC) for the period April 2018 to March 2019, with a total demand of approximately INR 17.66 crore, split equally into tax (INR 5.65 crore), interest (INR 6.36 crore), and penalty (INR 5.65 crore). The matter is under Section 74 of the CGST Act, 2017, which deals with cases involving fraud or willful misstatement. The company is in the process of preparing its response and will submit it within the stipulated time. The outcome of this litigation could materially impact the company's financials if the demand is upheld.
A potential tax outflow of around INR 17.66 crore is a notable concern for shareholders, though the company still has the opportunity to contest the demand. Investors should watch for updates on the company's response and any further developments in this case, as an adverse outcome could affect near-term earnings.