Deepak Nitrite unit faces ₹4.3 crore GST recovery order

Deepak Nitrite Limited announced that its wholly-owned subsidiary, Deepak Phenolics Limited (DPL), has received an order from the additional commissioner, CGST & Central Excise, Vadodara-I. The order, dated October 8, 2025, requires DPL to recover ineligible input tax credit totaling ₹2,15,34,798/- (CGST & SGST each ₹1,07,67,399/-) along with applicable interest. Additionally, a penalty of ₹2,15,34,798/- (CGST & SGST each ₹1,07,67,399/-) has been imposed.

The GST authorities allege that DPL claimed input tax credit on certain ineligible services. DPL maintains that it availed input tax credit in accordance with applicable GST law and has obtained an independent expert legal opinion supporting its position.

Deepak Phenolics Limited plans to pursue all appropriate legal remedies, including filing an appeal against the order. The company expects no material financial impact beyond the amounts stated in the recovery and penalty order.