Pidilite Industries, a leading adhesive, waterproofing solutions and construction chemicals maker on Saturday said a fine of Rs 2.64 lakh has been imposed on the company by the GST department.
The company, however, expects a favourable outcome at the appellate level.
Based on the company's assessment, prevailing law and the legal advice of the external counsel, Pidilite Industries "reasonably expects" a favourable outcome after it challenges the penalty at the appellate level, the company said in a regulatory filing.
"The company has received an order dated August 30, 2023, which was received by the company on September 7, 2023... from the office of the Assistant Commissioner of Central Tax, Division – III, Bhosari, Pune imposing a penalty of Rs 2,64,844 under applicable provisions of the CGST Act, 2017," it said.
The order has been passed with regard to disallowance of input tax credit (ITC) in the state of Maharashtra for CIPY, a company which has been merged with Pidilite Industries on April 1, 2022.
"The GST department has disallowed the company's claim on input credit claimed and related matters. It may be noted that this demand relates to the year 2017-18, which was before CIPY became a subsidiary of the Company," it said.
Pidilite Industries further said there is no material impact on financials, operations or other activities of the company.