Kansai Nerolac Paints announced the receipt of two separate orders under Section 74 of the CGST Act, 2017, related to Input Tax Credit (ITC) disallowances for FY 2017-18 and FY 2019-20. The total confirmed penalty across both years amounts to ₹2,99,39,340. The company maintains that it possesses the necessary legal documentation to contest these demands via appeal before the GST Tribunal, asserting that there will be no material financial or operational impact.
GST Appeals Confirmed Against Kansai Nerolac
Kansai Nerolac Paints Limited has disclosed receiving two distinct orders resulting from proceedings under Section 74 of the Central Goods and Services Tax Act, 2017, pertaining to the disallowance of Input Tax Credit (ITC) claimed by the Company in previous financial years. The disclosures were made on 30th March, 2026.
Assessment Year 2017-18 Details (Maharashtra)
For the Assessment Year 2017-18, the order was issued by the Commissioner Appeals II, CGST & Central Excise, Mumbai. The order confirmed a penalty amounting to Rs. 2,78,89,642/-. This demand stems from the disallowance of transitional ITC claimed by the Company for the state of Maharashtra during that fiscal year. The Company intends to file an appeal against this order before the GST Tribunal, asserting the availability of relevant records and legal precedence to prove its claim.
Assessment Year 2019-20 Details (Haryana)
For the Assessment Year 2019-20, an order was passed by the Deputy Commissioner, CGST Division-West, CGST Faridabad. This order imposed a penalty of Rs. 20,49,698/-. The demand is primarily based on the partial disallowance of ITC claimed by the Company for the state of Haryana in FY 2019-20. Similar to the first case, the Company plans to file an appeal to prove the validity of its ITC claims.
Impact Assessment
In both cases, the Company has explicitly stated that there is no material impact on its financials, operations, or other activities, as the matter will be contested through the appellate process.
Source: BSE
