Akzo Nobel India's FY19 GST demand slashed from ₹177 crore to ₹42 lakh

Paints and coatings maker Akzo Nobel India Ltd on Thursday (January 1) said it has received an order from the Karnataka GST Department revising the pending tax demand for the financial year 2018–19.

The

matter relates to a show-cause notice issued by the Karnataka GST Department on June 27, 2025, which had proposed a total demand of ₹176.65 crore. This included tax of ₹56.52 crore, interest of ₹63.61 crore, and penalty of ₹56.52 crore, citing disallowance of input tax credit under Section 74 of the CGST/SGST Act, 2017.

Also Read: Stock Crash: Akzo Nobel shares tank 14% after equity worth ₹1,640 crore traded in block deal

Following submission of its response along with supporting documents, the Assistant Commissioner of Commercial Taxes, LGSTO LTU, Large Taxpayers Unit, Bengaluru, reviewed the case and issued an order dated December 30, 2025, received by the company on January 1, 2026. The revised demand now stands at ₹41.56 lakh, comprising tax of ₹12.90 lakh, interest of ₹15.77 lakh, and penalty of ₹12.90 lakh.

The company said the order remains open for further submissions, and it is in the process of responding within the indicated timeframe. Akzo Nobel India clarified that the matter does not involve litigation against key management personnel, promoters, or any ultimate person in control, and there has been no settlement of the proceedings as of this date.

Shares of Akzo Nobel India Ltd ended at ₹3,180.00, down by ₹2.70, or 0.085%, on the BSE.

Also Read: CCI clears JSW Paints’ acquisition of up to 75% stake in Akzo Nobel India