GST department imposes Rs 2.64 lakh fine on Pidilite Industries

Pidilite Industries, manufacturer of adhesives, waterproofing solutions, and construction chemicals, announced on Saturday that it has been fined Rs 2.64 lakh by the GST department. However, the company is optimistic about a favourable resolution through the appellate process.

In accordance with the company's assessment, prevailing regulations, and guidance from external legal advisors, Pidilite Industries anticipates a favourable outcome as it challenges the imposed penalty at the appellate level. This information was disclosed in a regulatory filing.

Penalty notification details

The company received an order on August 30, 2023, which was officially received on September 7, 2023, from the Assistant Commissioner of Central Tax, Division III, Bhosari, Pune. The order imposed a penalty of Rs 2,64,844 under the applicable provisions of the CGST Act, 2017.

This order pertains to the disallowance of input tax credit (ITC) in Maharashtra for CIPY, a company that merged with Pidilite Industries on April 1, 2022.

The GST department disallowed the company's input credit claim and related matters. It's worth noting that this demand pertains to the fiscal year 2017-18, which predates CIPY becoming a subsidiary of Pidilite Industries.

Pidilite Industries further clarified that this development does not have a significant impact on the company's financials, operations, or other activities.

(With PTI Inputs)