Deepak Nitrite Limited’s wholly owned subsidiary, Deepak Phenolics Limited (DPL), has been ordered to pay a penalty of ₹2,15,34,798 by the Commissioner (Appeal), CGST & Central Excise (Appeals), Vadodara, Gujarat. The order, dated 6th March 2026, was downloaded on 31st March 2026, and pertains to the recovery of ineligible Input Tax Credit (ITC) under the CGST and SGST Acts.
The GST authorities have rejected DPL’s appeal and upheld the order for the recovery of the ineligible ITC amounting to ₹1,07,67,399 for both CGST and SGST, along with applicable interest under Section 74(1) read with Section 50(3) of the CGST Act, 2017. Additionally, a penalty of the same amount has been imposed under Section 74(1) of the CGST Act, 2017.
DPL maintains that it has availed input tax credit in accordance with the applicable provisions of GST Laws and plans to pursue all appropriate legal remedies. This includes filing an appeal against the order before the relevant appellate authority as prescribed under the GST Law.
The company has stated that there will be no material financial impact except for the amounts mentioned in the order. The order reflects the ongoing scrutiny and enforcement of GST compliance among Indian corporates.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).