GST: Rs.2.64 Lakh Fine imposed on Pidilite due to ITC issues:

GST: Rs.2.64 Lakh Fine imposed on Pidilite due to ITC issues Pidilite Industries, a renowned manufacturer of adhesives, waterproofing solutions, and building chemicals, announced on Saturday that the GST department had issued a fine of Rs 2.64 lakh on the company. However, the corporation anticipates a favourable conclusion at the appellate level. According to a regulatory filing, Pidilite Industries "reasonably expects" a good outcome after challenging the penalty at the appellate level based on its assessment, current legislation, and the legal opinion of its external counsel. "The company has received an order dated August 30, 2023, which the company received on September 7, 2023... from the office of the Assistant Commissioner of Central Tax, Division III, Bhosari, Pune imposing a penalty of Rs.2,64,844 under applicable provisions of the CGST Act, 2017," it stated. The ruling prohibits CIPY, a company that merged with Pidilite Industries on April 1, 2022, from claiming input tax credit (ITC) in the state of Maharashtra. "The GST department has denied the company's claim for input credit and related issues. It should be noted that this demand relates to the year 2017-18, prior to CIPY becoming a subsidiary of the Company," it said. Pidilite Industries further stated that there will be no major impact on the company's financials, operations, or other activities.