Akzo Nobel India Limited on Wednesday informed stock exchanges that it has received an order from the Telangana GST Department raising a tax demand of Rs 44.98 lakh, following a show cause notice issued earlier.

In a regulatory filing dated January 1, 2026, the company said the order was issued by the Assistant Commissioner, Kukatpally CGST Division, Hyderabad, under Section 73 of the CGST/SGST Act, 2017. The matter relates to the period from April 2021 to March 2022.

According to the disclosure, the original show cause notice, received on September 30, 2025, proposed a demand of Rs 40.85 lakh on account of alleged disallowance of input tax credit, along with applicable interest and penalty. Akzo Nobel India had submitted its response with supporting documents within the prescribed timeline.

Following review, the tax authority issued an order dated December 29, 2025, which was received by the company on January 1, 2026. The order raised a total demand of Rs 44.98 lakh, comprising tax of Rs 40.85 lakh, applicable interest, and a penalty of Rs 4.12 lakh.

Akzo Nobel India stated that the order is open for further submissions and that the company is in the process of responding to the same within the stipulated timeframe, in accordance with applicable laws and procedures.

The company clarified that there is no litigation involving key managerial personnel, promoters, or persons in control, and that the matter does not involve any settlement at this stage