DFPCL Challenges ₹26.76 Lakh Tax Bill, Sees No Major Impact

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AuthorKavya Nair|Published at:
DFPCL Challenges ₹26.76 Lakh Tax Bill, Sees No Major Impact
Overview

Deepak Fertilisers And Petrochemicals Corporation Limited (DFPCL) has received a ₹26.76 lakh demand order from the CGST department over disallowed input tax credit. The company considers the demand unfounded and plans to challenge it, anticipating no significant impact on its finances or operations.

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DFPCL to Appeal ₹26.76 Lakh CGST Demand

Deepak Fertilisers And Petrochemicals Corporation Limited (DFPCL) announced on March 11, 2026, that it received a demand order from the Commissioner of Central Goods and Services Tax (CGST) for ₹26,75,620. This demand relates to disallowed input tax credit (ITC).

The order is split evenly between tax (₹13,37,810) and penalty (₹13,37,810), with no interest component specified. DFPCL considers the demand untenable and plans to challenge it, stating it expects no material impact on its financials or operations. Input tax credit is a key feature of the Goods and Services Tax (GST) regime, allowing businesses to reclaim taxes paid on inputs.

Disputes over ITC eligibility and claims are common under India's Goods and Services Tax (GST) regime, often stemming from documentation issues or mismatches. Companies frequently pursue appeals against such demands.

DFPCL will now initiate an appeal process with the designated appellate authority. Should the appeal be unsuccessful, the company would be liable to pay the full ₹26.76 lakh demand, plus any potential legal costs.

The company operates in the competitive fertiliser and industrial chemicals sectors, where peers like RCF, Chambal Fertilisers, and Reliance Industries also navigate similar regulatory landscapes.

Investors will monitor DFPCL's progress in filing and pursuing its appeal, the final outcome of the legal challenge, and any future updates on tax-related matters.

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