# Kansai Nerolac Paints Receives ₹66.70 Lakh CGST Penalty Over Input Tax Credit

> Kansai Nerolac Paints received a ₹66.70 lakh CGST penalty over input tax credit disallowance for FY21 to FY24 and is appealing the order.

- Published: 2026-11-05T09:29:12+00:00
- Section: Regulation & Approvals
- Author: News Desk
- URL: https://newsforagent.com/news/2026-11-05/nerolac-paints-cgst-penalty-itc
- Source: [ScanX](https://scanx.trade/stock-market-news/companies/kansai-nerolac-receives-66-70-lakh-cgst-penalty-itc-disallowance/55415442)

## Key takeaways

- Kansai Nerolac Paints received a ₹66.70 lakh penalty from the Central GST authority on November 5, 2026.
- The order, under Section 74 of the CGST Act, 2017, concerns partial disallowance of input tax credit for FY21 to FY24.
- Kansai Nerolac said the order rests on a wrong understanding of facts and that it is filing an appeal.

Kansai Nerolac Paints received a ₹66.70 lakh penalty from the Central Goods and Services Tax authority over partial disallowance of input tax credit for FY21 to FY24, the company disclosed on November 5, 2026. [ScanX](https://scanx.trade/stock-market-news/companies/kansai-nerolac-receives-66-70-lakh-cgst-penalty-itc-disallowance/55415442) reported the order and the company's plan to appeal.

## Inside the Raipur GST Order

The order was passed by the Assistant Commissioner, Central GST & CEX, Division II, Raipur, under Section 74 of the CGST Act, 2017. The demand arose from the State of Chhattisgarh over input tax credit the company claimed during FY21 to FY24. Kansai Nerolac disclosed the order under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Kansai Nerolac said the order was passed on a wrong understanding of facts and that it holds records to substantiate its claims. The company is in the process of filing an appeal against the order. Management said the penalty has no material impact on the company's financials, operations or other activities.

[Kansai Nerolac Paints](https://akta.pro/company-profiles/002nwhl/nerolac-paints) is India's third-largest paint manufacturer, with about 15% market share, producing decorative, industrial and automotive coatings across six plants. The company was founded in 1920 and is headquartered in Mumbai.

## Nerolac's Sales and Merger Record

According to akta.pro [company records](https://akta.pro/company-data), Kansai Nerolac's full-year consolidated sales rose 2.93% to ₹8,051.91 crore in FY26. Consolidated net sales for the quarter ended March 2026 were ₹1,953.71 crore, up 7.54% year on year. Revenue grew from ₹5,280 crore in FY20 to approximately ₹7,825 crore in FY25, the same records show.

## Earlier Filings and Results

On November 4, 2026, Kansai Nerolac updated its list of Key Managerial Personnel effective December 1, 2026, authorizing the MD, CFO and CS to determine materiality and make disclosures, superseding earlier intimations under SEBI LODR Regulation 30(5), ScanX reported. That day, CNBC TV18 reported an 8.4% year-on-year rise in net profit to ₹146 crore for the September quarter, with revenue up 18.6% to ₹2,317 crore and EBITDA margin at 9.7% from 11%. On September 25, 2026, ScanX reported that Kansai Nerolac received NCLT Mumbai sanction on September 24, 2026, for its amalgamation with wholly owned subsidiary Nerofix Private Limited, with an appointed date of April 1, 2025 and no new shares issued.

## What Comes Next for Nerolac

The company said it is in the process of filing an appeal against the Raipur order. The Key Managerial Personnel authorization takes effect on December 1, 2026.

## Companies in this story

- [Nerolac Paints company profile](https://akta.pro/company-profiles/002nwhl/nerolac-paints) · website: https://www.nerolac.com

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