Deepak Nitrite Subsidiary DPL Faces ₹2.15 Crore GST Demand with Interest
Deepak Nitrite's subsidiary, DPL, received a GST order upholding recovery of ₹2.15 crore in ineligible ITC, plus a ₹2.15 crore penalty. DPL plans to appeal, stating no material financial impact beyond the disputed amount.
While the company states no material financial impact, a demand of ₹2.15 crore plus penalty and interest could have a moderate financial effect and involves ongoing litigation.
The company is facing a significant tax demand and penalty, which is a negative development.
Deepak Nitrite Limited (DNL) has disclosed via a letter dated April 1, 2026, that its wholly-owned subsidiary, Deepak Phenolics Limited (DPL), has received an order from the Commissioner (Appeals), CGST & Central Excise, Vadodara, Gujarat. This order, dated March 6, 2026, and downloaded on March 31, 2026, upholds a previous order for the recovery of ineligible Input Tax Credit (ITC) amounting to ₹1,07,67,399 each for CGST and SGST, totaling ₹2,15,34,798. Additionally, a penalty of ₹2,15,34,798 has been imposed under the GST Law.
DPL maintains that it has availed input tax credit in accordance with applicable GST provisions and intends to pursue all appropriate legal remedies, including filing an appeal against the order. The company stated that there will be no material financial impact except for the amount mentioned in point 2.
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See the model portfoliosA plain-language summary of a public exchange filing by Deepak Nitrite Limited. Read the original for the full detail.