Kansai Nerolac Paints Limited has disclosed an order passed by the Superintendent of GST & Central Excise, Vadapalani, under Section 74 of the CGST Act, 2017. The order imposes a penalty of ₹16,50,467. The demand arises from alleged short payment of tax on outward supply consignments in Tamil Nadu during FY 2018-19. The company stated that the order is based on a wrong understanding of the facts, asserting that adequate taxes have already been paid and relevant records are available to support their claims. Kansai Nerolac is in the process of filing an appeal against this order. The company also noted that there is no material impact on its financials, operations, or other activities in quantifiable monetary terms. The announcement was made on 23rd December 2025, with the order received on 22nd December 2025.