Diffusion Engineers received a GST order dated March 24, 2026 demanding ₹72,13,794 for alleged excess ITC availed in FY2019-20.
The order also imposes an equal penalty of ₹72,13,794 plus applicable interest under Section 50 of the CGST Act.
The company intends to challenge the demand, stating it believes the order is not sustainable and will have no material financial impact.