Diffusion Engineers faces ₹72 lakh GST demand over alleged excess ITC

Arunika Jain — Thu, 26 Mar 2026 11:34:25 +0000

Diffusion Engineers has been issued a tax demand of ₹72,13,794 by the Assistant Commissioner of Central GST and Central Excise, Division–Hingna, Nagpur-I. The demand, dated March 24, 2026, was received by the company on March 25, 2026, and relates to the alleged excess availment of Input Tax Credit (ITC) for the financial year 2019–2020.

The order, passed under Section 74 of the Central Goods and Services Tax Act, 2017, not only demands recovery of the aforementioned tax amount but also imposes a penalty of ₹72,13,794, equivalent to the tax demand. Additionally, interest under Section 50 of the CGST Act is applicable on the tax demand.

Diffusion Engineers is currently assessing the order and plans to contest the demand and penalty before the appropriate authority. The company has expressed its belief that the demand is not sustainable and anticipates that it will not materially impact its financial position, operations, or other activities.

The details of the order have been enclosed as Annexure A in the filing, complying with the requirements under Clause 20 of Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

Input Tax Credit | Business Upturn

Diffusion Engineers faces ₹72 lakh GST demand over alleged excess ITC