CGST Imposes ₹16.03 Crore Fine on Pidilite Industries
Pidilite Industries, a leading player in the adhesives and waterproofing sector, has been slapped with a ₹16.03 crore penalty by the Central Goods and Services Tax (CGST) Additional Commissioner, Mumbai South. The penalty pertains to certain discrepancies identified by the tax authorities.
Despite the financial setback, Pidilite has reassured stakeholders that it does not anticipate any material impact on its financial standing, operational activities, or overall business performance. The company responded to the tax order through regulatory filings, clarifying that it is evaluating the situation and exercising its right to appeal the penalty to the highest authority as permitted under law. The tax imposition follows an earlier penalty of ₹1.15 crore, which Pidilite faced in December 2024 in relation to a GST audit for the years 2017-2019.
Pidilite has a long-standing presence in the Indian market, providing a wide range of adhesive products and solutions for various industries. The latest penalty adds to the company’s ongoing regulatory challenges, particularly concerning its tax filings and assessments. However, Pidilite’s management remains optimistic about the appeal process and reassured investors that the business will continue as usual. While the company asserts no significant disruption to its operations, the matter underscores the increasing scrutiny faced by large corporations concerning Goods and Services Tax compliance. The outcome of the appeal will be closely monitored, as it may set a precedent for similar cases in the future.
