Indigo Paints Faces Penalty of Rs 19.26 Crore Due to Availment of ITC on IPO-Related Expenses

Indigo Paints Ltd, India’s leading paint company, received a penalty order of Rs 19.26 Crores, including interest and penalty, from the Assistant Commissioner of State Tax, Pune. The penalty order is related to the availment of GST Input Tax Credit (ITC) on the Initial Public Offering (IPO) expenses.

The disclosure was made by Indigo Paints under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, where the company informed about the receipt of the penalty order on November 21, 2025. The company has shared that the order has no immediate impact on the financial, operational or other activities of the company.

The IPO related expenses are the costs incurred by a company to go public. These expenses include the fees for investment banks, marketing, printing, etc. Under the GST law, the eligibility to claim ITC on IPO-related expenses is a complex area and is a major point of dispute.

Indigo Paints is now planning to challenge the order by filing an appeal before the GST Appellate Tribunal.