Diffusion Engineers Ltd. Receives GST Order Demanding ₹72.14 Million
Diffusion Engineers Ltd. announced it received an order on March 25, 2026, from the Assistant Commissioner, Central GST and Central Excise, Division -Hingna, Nagpur-I. The order, dated March 24, 2026, concerns a demand for ₹72,13,794, related to alleged excess availment of Input Tax Credit (ITC) for the financial year 2019-2020.The order also includes applicable interest under Section 50 of the Central Goods and Services Tax Act, 2017, and a penalty of ₹72,13,794 under Section 74 of the CGST Act.
Diffusion Engineers Ltd. is currently assessing the order and plans to challenge the demand and penalty through appropriate channels. The company believes the demand is not sustainable and will not have a material impact on its financial position or operations.
Here’s a summary of the order details:
| Detail | Information |
|---|---|
| Authority | Office of the Deputy/Assistant Commissioner Central GST and Central Excise, Division - Hingna, Nagpur-I |
| Order Details | Order passed under Section 74 of the CGST Act, 2017 confirming a GST demand of ₹72,13,794 due to alleged excess ITC availed for FY 2019-20, with applicable interest and a penalty of ₹72,13,794. |
| Date of Receipt | March 25, 2026, at 05:20 p.m. |
| Alleged Violation | Alleged excess Input Tax Credit (ITC) availment during the financial year 2019-2020. |
| Potential Impact | The Company believes the demand is not sustainable and will not have a material impact on its financial position, operations, or other activities. |
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