On August 29, 2024, Akzo Nobel India Limited updated the stock exchanges regarding a significant development in its ongoing litigation with the Madhya Pradesh GST Department. The company had initially received a Show Cause Notice (SCN) dated May 31, 2024, which challenged the input tax credit claims for the financial year 2019-20 under the Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) Act, 2017. The SCN demanded a substantial amount of Rs. 9,26,71,357, inclusive of tax claims but without any interest or penalties.

In response to this notice, Akzo Nobel India Ltd submitted its detailed reply along with supporting documents to the Additional Commissioner of CGST and Central Excise in Bhopal. The department reviewed the response and issued a revised order on August 27, 2024, which the company received on August 28, 2024. This new order demands a reduced amount of Rs. 77,13,373. This amount comprises Rs. 70,12,157 in tax, Rs. 7,01,216 in penalty, and applicable interest.

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The revised demand reflects a significant reduction from the initial notice. However, the company has the opportunity to further respond and make submissions to the relevant authorities before the finalization of this order. Akzo Nobel India Ltd is in the process of preparing its response to ensure compliance and to address any additional concerns raised by the GST Department.

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In line with SEBI’s (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the recent SEBI circular SEBI/HO/CFD/CFDPoD-1/P/CIR/2023/123 dated July 13, 2023, the company is committed to keeping the stakeholders informed about the progress of this litigation. The details provided in Annexure-1 highlight the ongoing nature of this legal matter and emphasize the company's compliance with disclosure obligations.

For investors and stakeholders, this update provides a clearer picture of the current status of the GST dispute and the steps being taken by Akzo Nobel India Ltd to resolve the matter. The company remains engaged in resolving the dispute and will continue to update the exchanges as necessary.

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