Deepak Nitrite Ltd. Receives Order from GST Authorities Impacting Subsidiary
Deepak Nitrite Ltd. announced that the Commissioner (Appeal), CGST & Central Excise (Appeals), Vadodara, Gujarat, issued an order against Deepak Phenolics Limited (DPL), a wholly-owned subsidiary of the company, on March 6, 2026. The order, downloaded on March 31, 2026, pertains to the recovery of ineligible Input Tax Credit and imposition of a penalty.The GST Authorities rejected the appeal and upheld the order, resulting in a demand for recovery of ineligible Input Tax Credit of 21,53,47,980, along with applicable interest. Additionally, a penalty of 21,53,47,980 was imposed. The breakdown is as follows:
| Sr. No. | Details of events | Information of such event(s) |
|---|---|---|
| 1 | Name of Authority | Commissioner (Appeal), CGST & Central Excise (Appeals), Vadodara, Gujarat |
| 2 | Nature and details of action | Recovery of ineligible Input Tax Credit of 21,53,47,98 (CGST & SGST each 10,767,399) and imposition of a penalty of 21,53,47,98 (CGST & SGST each 10,767,399) under the CGST Act, 2017 and GGST Act, 2017. |
| 3 | Date of receipt | March 31, 2026 |
| 4 | Details of violation | DPL maintains that it has availed input tax credit in accordance with the applicable provisions of GST Laws and intends to pursue legal remedies, including an appeal against the order. |
| 5 | Impact | No material financial impact, except for the amounts detailed in point no. 2. |
According to the company, there will be no material financial impact beyond the amounts outlined. Deepak Nitrite Ltd. intends to pursue all available legal remedies.
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