The Karnataka GST Department slashed JSW Dulux’s tax liability by nearly two-thirds, cutting the disputed amount from ₹118.33 crore to ₹42.04 crore. This order, issued on October 15 by the Assistant Commissioner of Commercial Taxes in Bengaluru, targets the input tax credit (ITC) for the fiscal year 2021. The company received the notification on October 19 at 3:30 pm and disclosed the development in a regulatory filing dated October 19, 2026.
The initial show-cause notice, dated August 5, 2026, had threatened a massive hit including ₹40.09 crore in tax, ₹38.18 crore in interest, and ₹40.07 crore in penalties. After reviewing JSW Dulux’s submission and supporting documents, the authority recalculated the figures. The revised demand now stands at ₹14.07 crore in tax, ₹13.90 crore in interest, and ₹14.07 crore in penalties. That’s a net reduction of ₹76.29 crore, or 64.47%, from the original proposal.
But don’t celebrate just yet. The dispute isn’t closed. The company explicitly stated in its filing that it is preparing a response to this latest order within the stipulated timeframe. It retains the right to make further submissions to the relevant authorities. No cancellation of demand has been announced; this is merely a procedural step in an ongoing battle over ITC eligibility under Section 74 of the Central GST Act.
On the trading floor, the reaction was muted. JSW Dulux shares closed at ₹3,058.60 on the National Stock Exchange (NSE) on October 19. That’s a drop of ₹13.60, or 0.45%, from the previous close. The stock had opened higher at ₹3,094, suggesting that traders were already pricing in a potential relief or simply selling into the news. Given the stock’s high beta and the complexity of tax litigation, a minor dip is typical until a final, binding judgment is delivered.