JSW Dulux Limited has provided an update regarding a tax litigation matter involving the Karnataka GST Department. The company received an order dated March 31, 2026, concerning a demand for the April 2019 – March 2020 period. The current total demand stands at ₹14.76 crore, following a prior notice that had cited a significantly higher amount. The company is currently reviewing the order and preparing its response for the relevant authorities.
Background of the Tax Matter
On June 3, 2024, the company was issued a Show Cause Notice by the Karnataka GST Department regarding the disallowance of input tax credit for the fiscal year 2019-2020. Initially, the department had raised a total demand of ₹101.09 crore, which included ₹36.88 crore in tax, ₹27.34 crore in interest, and ₹36.88 crore in penalties.
Updated Assessment
Following the submission of detailed responses and supporting documentation by the company, the Assistant Commissioner of Commercial Taxes reviewed the case. On April 21, 2026, the company received a revised order dated March 31, 2026. The new demand is significantly reduced to ₹14.76 crore. This revised figure comprises ₹4.81 crore in tax, ₹5.15 crore in interest, and ₹4.81 crore in penalty.
Next Steps
The company maintains that it is proactively managing this tax litigation. The current order allows for further submissions, and the management is in the process of finalizing its formal response to the authorities within the permitted timeframe to address the remaining demand.
Source: BSE
