Deepak Nitrite Limited has been ordered by the Assistant Commissioner of State Tax, Unit-40, Vadodara, Gujarat, to pay a total amount of ₹60,46,796 under the Gujarat Goods and Service Tax Act, 2017. The order, dated 7th March 2026, was received by the company on 25th March 2026.
The order includes the recovery of a tax amount of ₹19,14,506, interest amounting to ₹22,17,784, and a penalty of ₹19,14,506. These amounts are under the Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) as per sections 74(5), 50, and 74(8) of the GGST Act, respectively.
The demand was raised due to alleged ineligible Input Tax Credit (ITC) claimed by Deepak Nitrite for the financial year 2019-20. The company, however, asserts that the ITC was availed following due legal processes and compliance with GST law conditions.
Deepak Nitrite is currently in the process of exploring appropriate legal remedies to challenge the order, which includes the recovery of tax, interest levy, and penalty. The company believes that there will be no material financial impact beyond the quantified amounts mentioned.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).