Kansai Nerolac Paints Limited — Important, 18-01-2025: General Updates

An order has been issued by the Joint Commissioner of CGST & Central Excise, Patna, levying a tax of Rs. 1.86 crore (cr) along with a penalty of Rs. 1.86 crore (cr) under Section 74 of the CGST Act, stemming from the disallowance of transitional input tax credit claimed by KANSAI NEROLAC during FY 2017-18. The company possesses documentation to support its ITC claim and plans to appeal this order. Importantly, the company states that this situation does not carry a material impact on its financials or operations. Watch closely for updates as the appeal progresses.