Akzo Nobel India’s GST demand significantly reduced after appeal

Akzo Nobel India Limited informed stock exchanges on December 3, 2025, that it received an order from the Karnataka GST Department on December 2, 2025. This order relates to a show cause notice issued on September 30, 2025, concerning the disallowance of input tax credit under Section 73 of the CGST/SGST Act, 2017, for April 2021 to March 2022.

The initial show cause notice demanded a total of INR 99,93,584/-, comprising INR 61,31,033/- in tax, INR 38,62,551/- in interest, and applicable penalties. Akzo Nobel India submitted its response along with supporting documents within the stipulated timeframe. Following the review of this response, the deputy commissioner, large taxpayers unit-LTU Karnataka GST Department, issued an order with a significantly reduced demand.

The revised demand in the order is INR 5,04,712/-, which includes INR 2,86,768/- in tax, INR 1,89,267/- in interest, and INR 28,677/- in penalty. Akzo Nobel India stated that the order is open for further submissions before relevant authorities, and the company is responding within the timeframe mentioned in the order.