Asian Paints Limited received order dated 18th March 2024 passed by the State Tax Officer, Mumbai, Maharashtra. Nature and details of the action taken, initiated or order passed includes an Order passed under relevant provisions of the Central Goods and Services Tax Act, 2017 and the corresponding provisions of the Maharashtra Goods and Services Tax Act, 2017 (`Acts') for disallowing and recovering ineligible input tax credit amounting to INR 1,538,428 along with applicable interest and imposing a penalty of INR 166,548 for the financial year 2018-19. Details of the violation/contravention committed or alleged to be committed includes Disallowance of input tax credit amounting to INR 1,538,428 relating to suppliers who have not filed GSTR 3B returns and suppliers whose registrations were canceled.

However, the suppliers have filed their GSTR 1 returns and reported the invoices issued to the Company in their GSTR 1. The Company availed input tax credit after ensuring that taxes charged on the respective invoices had been reported in the supplier's GST returns. The Company has fulfilled all the conditions prescribed under the aforesaid Acts with respect to availing of the input tax credit, in the aforementioned case. The Company has a strong case based on merits and will be filing an appeal against the said Order within the prescribed timelines.