Asian Paints Limited informed that an Order dated 25 April 2024 was passed by the Deputy Commissioner of State Tax, Chennai, Tamil Nadu, and the details are: An Order passed under relevant provisions of the Central Goods and Services Tax Act, 2017 and the corresponding provisions of the Tamil Nadu Goods and Services Tax Act, 2017 (Acts) for Fiscal Year 2018-19, inter alia, demanding additional tax on outward supplies and disallowance on account of input tax credit (ITC). The total tax demand amounts to INR 28,276,829 and a penalty of INR 2,827,682 has been imposed. Details of the violation: The adjudication authority has raised tax demand along with interest and penalty as stated.

However, the Company has discharged liability towards applicable taxes on the outward supplies made in time. The Company has also fulfilled all the conditions prescribed under the aforesaid Acts availment of the ITC. The Company has a strong case based on merits and will be filing an appeal against the said Order within the prescribed timelines.

There is no material impact on the financial, operation, or other activities of the Company.