Akzo Nobel India Faces GST Tax Dispute Worth Over Rs 46 Crore

Akzo Nobel India has received show cause notices from Karnataka and Uttar Pradesh tax authorities for a total of over Rs 46 crore. The issue pertains to disallowed input tax credits and tax dues. The company plans to address these notices with further submissions to the authorities.

Akzo Nobel India, a well-known paints and coatings manufacturer, is currently facing a significant financial dispute over tax issues. On Wednesday, the company disclosed receiving formal show cause notices from tax authorities in Karnataka and Uttar Pradesh, with claims amounting to a total of over Rs 46 crore.

The notice from the Karnataka GST Department, dated November 26, 2024, demands repayments related to disallowed input tax credits and outstanding tax dues for the period from April 2020 to March 2021. The case involves a claimed amount of Rs 44.5 crore, including unpaid taxes, interest, and penalties, as per Akzo Nobel India's regulatory filing.

Additionally, a separate notice from the Uttar Pradesh GST Department was reported by the company on November 25, 2024. This notice similarly points to the disallowance of input tax credits and total dues of Rs 1.92 crore for the same period. Akzo Nobel India noted that it is preparing further submissions in response to these notices to argue its case before the authorities.

(With inputs from agencies.)