Paint Giant in Tax Spotlight: Akzo Nobel India Faces GST Heat in Maharashtra

Akzo Nobel India Ltd, the maker of Dulux paints and a key player in India’s decorative coatings market, has received a show cause notice from the Maharashtra GST Department, according to a regulatory filing dated July 2, 2025. The notice pertains to alleged discrepancies in the company’s Goods and Services Tax (GST) filings, though the exact quantum of the demand has not been disclosed.

 

The development adds to a string of similar notices the company has received in recent months from other state GST departments, including Gujarat, Karnataka, and Haryana, raising concerns over its tax compliance framework.

 

Key Highlights:

 

The Maharashtra GST Department has issued a formal show cause notice to Akzo Nobel India for alleged GST-related irregularities.

The company has acknowledged receipt of the notice and stated it is reviewing the matter internally with its legal and tax advisors.

This follows a series of GST-related notices from other states, suggesting a broader compliance audit across jurisdictions.

Akzo Nobel India has reiterated its commitment to full regulatory compliance and intends to respond within the stipulated timeframe.

The company’s shares remained largely stable post-announcement, indicating limited immediate investor concern.

Analysts believe the cumulative impact of multiple notices could lead to prolonged litigation or financial provisioning in future quarters.

 

While the company has not disclosed the financial implications of the Maharashtra notice, the repeated scrutiny may prompt a reassessment of its internal tax governance mechanisms.

 

Sources: BSE India, Rediff MoneyWiz, Economic Times