Deepak Nitrite has disclosed the receipt of an order dated March 7, 2026, from the Assistant Commissioner of State Tax, Gujarat, concerning the Gujarat Goods and Service Tax Act, 2017. The order pertains to the Financial Year 2019-20 and mandates the recovery of tax, interest, and penalties related to ineligible Input Tax Credit (ITC). The total demand involves a tax component of ₹19.14 lakh, interest of ₹22.17 lakh, and an equal penalty amount, totaling approximately ₹60.47 lakh.
Disclosure of Tax Authority Order
Pursuant to regulatory requirements, Deepak Nitrite Limited has informed the exchanges regarding an order passed by the Assistant Commissioner of State Tax, Unit-40, Vadodara, Gujarat. This order was dated March 7, 2026, and formally received by the Company on March 25, 2026, operating under the Gujarat Goods and Service Tax Act, 2017 (‘GGST Act’).
Details of the Recovery Demand
The GST Authority has issued a recovery order related to the Financial Year 2019-20, specifically concerning a demand for ineligible Input Tax Credit (ITC). The financial implications detailed in the order are as follows:
- Tax Amount: ₹ 19,14,506/- (CGST+SGST) demanded under section 74(5).
- Interest Amount: ₹ 22,17,784/- (CGST+SGST) demanded under section 50.
- Penalty Amount: ₹ 19,14,506/- (CGST+SGST) imposed under section 74(8).
Company Position and Next Steps
The Company asserts its belief that the ITC was availed after following the due process of law and complying with all mandated GST conditions. Regarding the impact, the Company states there will be no material financial impact, except for the cumulative amount demanded in point 2 above. Deepak Nitrite is currently in the process of taking appropriate legal course of action to challenge the demand covering the recovery of tax, levy of interest, and penalty.
Source: BSE
