Kansai Nerolac Paints Limited — Important, 03-01-2025: General Updates

Kansai Nerolac Paints has received orders from the Joint Commissioner of Central GST (Jharkhand) and the Assistant Commissioner of State GST (Delhi). The Central GST order mandates the company to pay a tax of ₹3.88 crore and a penalty of ₹3.88 crore concerning disallowed Input Tax Credit for FY 2017-18 to 2019-20. Similarly, the State GST order requires ₹0.99 crore in tax and an equivalent penalty due to the partial disallowance of transitional input tax credit claimed during FY 2017-18.

The company maintains that it possesses the necessary documentation to support its claims and intends to appeal against these orders. Importantly, there is no anticipated significant impact on the company's financials or operations from these developments. Stakeholders should monitor this situation closely as appeals are filed and evaluated.