Diffusion Engineers Receives GST Demand Order of ₹72.14 Lakhs
Diffusion Engineers received a GST demand order for ₹72.14 lakhs, including interest and penalty, for alleged excess ITC in FY 2019-20. The company plans to challenge the order, believing it will not materially impact its financials.
The company explicitly states that it believes the demand is not sustainable and will not have a material impact on its financial position, operations, or other activities. This suggests the financial implications are manageable.
The company has received a significant tax demand, which is a negative development. However, the company is evaluating the order and intends to challenge it, expressing confidence that it will not have a material impact. This stance mitigates the immediate negative sentiment.
Diffusion Engineers Limited has received an order dated March 24, 2026, from the Assistant Commissioner, Central GST and Central Excise, Nagpur, demanding recovery of tax amounting to ₹72,13,794. This demand is on account of alleged excess availment of Input Tax Credit (ITC) for the financial year 2019-2020.
The order also levies applicable interest under Section 50 of the CGST Act on the aforesaid tax demand and imposes a penalty of ₹72,13,794 under Section 74 of the CGST Act.
The company is currently evaluating the order and intends to challenge the proposed demand and penalty before the appropriate authority. Diffusion Engineers Limited believes that the demand is not sustainable and will not have any material impact on its financial position, operations, or other activities.
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Diffusion Engineers Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it low impact, the band that almost never moves a portfolio on its own.
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See the model portfoliosA plain-language summary of a public exchange filing by Diffusion Engineers Limited. Read the original for the full detail.