Sudarshan Chemical to Appeal ₹12.56 Lakh GST Demand

Sudarshan Chemical Industries has disclosed receiving GST orders that impose a total demand of ₹12,56,078. These orders cover periods ranging from April 2019 to March 2024. The company has stated its intention to appeal these demands, expressing confidence in its case and anticipating no material impact on its financial or operational activities.

The specific breakdown of the GST demand includes ₹65,920 for FY 2019-20, ₹5,89,258 for FY 2020-21, ₹4,19,970 for FY 2021-22, ₹80,598 for FY 2022-23, and ₹1,00,332 for FY 2023-24. The company reported receiving these orders on March 31, 2026.

Sudarshan Chemical Industries is a prominent global color and pigment manufacturer with over 60 years of experience. It is India's largest pigment producer, holding approximately 35% of the domestic market share. The company recently expanded its international manufacturing footprint across 11 countries following the acquisition of Germany's Heubach Group in FY2025.

For fiscal year 2025, Sudarshan Chemical reported consolidated revenue of ₹3,346 crore, up from ₹2,539 crore in FY2024. Despite this growth, historical concerns have been raised regarding certain financial metrics, such as its interest coverage ratio, promoter holding, and working capital days.

The company's proactive stance in planning an appeal, alongside its assertion of a strong case and expectation of no financial or operational impact, indicates confidence in managing this regulatory matter. The total demand of ₹12.56 lakh is considered relatively small in the context of Sudarshan Chemical's overall revenue. Management will now initiate the appeal process, with stakeholders expected to monitor its progression.