Akzo Nobel India, a leading paint and coatings manufacturer, recently received a major reduction in GST demand from the Telangana GST Department. The original demand issued by the department on January 2, 2024, amounted to Rs. 21.85 lakh for the period July 2017 to March 2020.
This demand was raised due to the disallowance of input tax credits under Section 73 of the Central Goods and Services Tax (CGST) Act, 2017, and the corresponding State Goods and Services Tax (SGST) Act, 2017. Along with the demand, a penalty of Rs. 1.98 lakh was also levied against the company.
Complete Draft Replies of GST ITC Related Notices, Click Here
Akzo Nobel India Limited, in response to this order, filed an appeal with the Commissioner of Appeals within the Telangana GST Department. The company provided all the necessary supporting documents within the stipulated time frame to contest the demand.
Following a thorough review, the Commissioner of Appeals of Telangana GST Department, issued a revised order on August 20, 2024, reducing the total GST demand to Rs. 14.77 lakh. However, the penalty of Rs. 1.98 lakh remained unchanged.
The company received the revised appeal order on October 18, 2024. While the reduction in demand represents a huge relief for Akzo Nobel India Limited, it is expected that the company will continue to challenge the revised demand.
Complete Draft Replies of GST ITC Related Notices, Click Here
The company is likely to pursue further steps within the allotted timeframe, as allowed under the provisions of the Central Goods and Services Tax (CGST) Act, 2017, and the State Goods and Services Tax (SGST) Act, 2017.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates