Desk note · industry · Tax / consumer goods
JSW Dulux said on 19 October 2026 that Karnataka commercial tax authorities trimmed a FY21 input tax credit dispute from ₹118.33 crore to ₹42.04 crore, though the paint maker is still preparing a further response and the matter is not closed.
On 19 October 2026, JSW Dulux Ltd informed exchanges that Karnataka GST authorities issued a fresh order on 15 October in a long-running input tax credit dispute covering fiscal 2021. The Assistant Commissioner of Commercial Taxes at LGSTO LTU Bengaluru cut the total demand to ₹42.04 crore from ₹118.33 crore floated in an August 2026 show-cause notice. The case sits under Section 74 of the Central and State GST laws, which deals with wrongful credit claims and can attract tax, interest, and penalties. JSW Dulux, formerly Akzo Nobel India, had filed documents within the earlier deadline. The company noted the order still allows further representations and that it is preparing the next response.
Input tax credit is the mechanism that lets manufacturers offset GST paid on raw materials and services against tax on paint sales. When auditors disallow credits, working capital gets tied up in deposits and legal fees long before courts finish. A 64% reduction on paper eases the cash shock but leaves ₹42 crore on the table, so the fight is not over. For the broader consumer sector, aggressive state audits on FY21 books remain common as governments reconcile pandemic-era returns with post-reform data. Outcomes vary by evidence on invoices and supply chain documentation.
Paint and home-improvement shoppers rarely see GST disputes, but sustained tax demands can delay brand spending or shift working capital away from promotions. Finance teams at listed FMCG and chemical names should stress-test FY21 credits still under review. Investors in JSW Dulux should treat the order as a partial win until a final appellate outcome. Watch whether the company discloses cash deposits, interest accrual, and any settlement talks in upcoming results.
Trade policy / exports
Commerce minister Piyush Goyal said on 22 October 2026 that India’s proposed free-trade agreement with the European Union could become operational within four to five months after signing, with the deal expected to be inked before year-end during his visit to Germany.
Food delivery / quick commerce
Swiggy reported on 22 October 2026 that September-quarter revenue rose 36% to about ₹7,571 crore and the consolidated net loss narrowed to ₹922 crore, as food delivery posted record adjusted core profit of about ₹349 crore while quick-commerce Instamart lost about ₹764 crore at the segment level amid heavier discounting and 69 new dark stores.
Quick-service restaurants / consumers
KFC and Pizza Hut operator Sapphire Foods India said on 22 October 2026 that September-quarter consolidated restaurant sales rose 20% year on year to about ₹885 crore, with KFC India same-store sales up 14% and adjusted EBITDA margin expanding 100 basis points to 7.1% even as the listed stock remained far below its 52-week high.
RBI / government borrowing
On 22 October 2026, the Reserve Bank of India accepted no bids at the scheduled sale of short-dated government treasury bills, the first full cancellation in about seven months, as investors demanded higher yields amid a bond selloff, oil-linked inflation fears, and expectations of more rate hikes after October’s policy minutes.
For informational purposes only. Not investment advice. Verify with filings and a licensed adviser.