Kansai Nerolac Paints Limited has received an order from the Commissioner (Appeals), CGST & CX Appeal, Allahabad, confirming a penalty of Rs. 29,26,459. The demand arises from a partial disallowance of Input Tax Credit (ITC) for the 2020-2021 financial year concerning operations in Uttar Pradesh. The company maintains that it has the necessary legal records and plans to challenge this decision by filing an appeal before the GST Tribunal.
Details of the Tax Order
On April 23, 2026, Kansai Nerolac Paints Limited received a formal order confirming a penalty of Rs. 29,26,459. The order pertains to the partial disallowance of Input Tax Credit (ITC) that was claimed by the company during the 2020-2021 financial year for its operations in the state of Uttar Pradesh.
Company Response and Future Outlook
The company has reviewed the order and stated that it possesses the relevant legal documentation and precedents to support its original claim. Consequently, management has decided to contest the order by filing a further appeal with the GST Tribunal.
Financial and Operational Impact
Kansai Nerolac Paints has clarified that this tax demand will have no material impact on the company’s financial position, ongoing operations, or overall business activities. The company remains committed to resolving the matter through the established legal appellate process.
Source: BSE
