Intimation under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and relevant SEBI Circulars is enclosed herewith.
KANSAINER · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Kansai Nerolac Paints has received two GST orders under Section 74 of the CGST Act. For AY 2017-18, the Commissioner (Appeals) in Mumbai confirmed a penalty of Rs. 2.79 crore on disallowance of transitional Input Tax Credit (ITC) claimed for Maharashtra. For AY 2019-20, the Deputy Commissioner in Faridabad imposed a penalty of Rs. 20.5 lakh on partial disallowance of ITC claimed for Haryana. Total exposure is roughly Rs. 2.99 crore. The company says it has the relevant records and legal precedents to support its claim and will file further appeals in both cases. Management has stated there is no material impact on financials, operations, or other activities.
The combined penalty of ~Rs. 2.99 crore is small relative to the company's size and has been flagged as non-material by management, so the direct hit on earnings is limited. However, the appellate loss in the Maharashtra case is a negative signal, and any adverse final ruling could create additional tax liability plus interest.