JSW Dulux Limited received a show cause notice from the Karnataka GST Department demanding ₹48.59 crore for alleged input tax credit disallowance. The notice, issued under Section 73 of the CGST Act, 2017, covers the period from April 2022 to March 2023.
The company disclosed the litigation on September 7, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Deputy Commissioner of the Large Taxpayers Unit in Bengaluru issued the notice following a GST scrutiny.
Breakdown of Demand
The aggregate liability comprises tax, interest, and penalty components as detailed below:
| Component | Amount (₹) |
| Tax | 27.11 crore |
| Interest | 18.76 crore |
| Penalty | 2.71 crore |
| Total | 48.59 crore |
The tax component accounts for approximately 56% of the total demand, while interest constitutes nearly 39%.
Management Response
JSW Dulux stated that the show cause notice is open for further submissions before the relevant authorities. The company is preparing its response within the stipulated time frame mentioned in the notice. No financial provision has been disclosed in this filing.
What the Numbers Show
The interest component of ₹18.76 crore is substantial relative to the principal tax demand of ₹27.11 crore. This high interest burden suggests the dispute involves periods where delayed payment penalties have accumulated significantly over time, potentially impacting cash flow if the claim is upheld without adjustment.
