Asian Paints further said it has discharged applicable taxes on the outward supplies made by the company and has also fulfilled all the conditions prescribed for availing of the ITC
Asian Paints on Monday informed that it has received a GST demand notice of Rs 13.83 crore and a penalty of Rs 1.38 crore from the Deputy Commissioner of State Tax, Chennai.
The demand is for the financial year 2017-18 over mismatch on input tax credit (ITC), the leading paints maker said in a regulatory filing.
“The company has a strong case based on merits and will be filing rectification and/or appeal against the said order within the prescribed timelines,” it added.
Asian Paints further said it has discharged applicable taxes on the outward supplies made by the company and has also fulfilled all the conditions prescribed for availing of the ITC.
The order was passed under relevant provisions of the Central Goods and Services Tax Act, 2017, and the corresponding provisions of the Tamil Nadu Goods and Services Tax Act, 2017.
The department has demanded “additional tax on outward supplies, disallowance on account of ITC mismatch between purchases reported by the supplier in GST return and credit claimed by the company, ITC of invoices pertaining to FY 2017-18 and claimed in FY 2018-19”.
According to the company, the penalty would have “no material impact on the financial, operation, or other activities” of Asian Paints, the filing said.
For the financial year ended March 31, 2023, Asian Paints revenue was at Rs 30,078.40 crore.
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