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JSW Cement has received a show-cause notice from the Central GST authorities proposing a tax demand of INR 229.85 crore over an alleged short payment of GST linked to the
classification of certain transactions.
The notice was issued by the Additional Commissioner of Central Tax, Belagavi Audit Commissionerate, and was received by the company on September 24, according to a regulatory filing. The proposed demand relates to the period between April 2022 and March 2024.
The proposed GST liability comprises approximately INR 121.76 crore in Integrated GST (IGST), INR 54.05 crore in Central GST (CGST), and INR 54.05 crore in State GST (SGST).
The tax authorities have proposed the demand under Section 73 of the Central Goods and Services Tax Act, 2017, along with applicable interest and a penalty equivalent to 10% of the tax amount. The notice also cites alleged contraventions involving provisions related to GST payment and reporting.
JSW Cement said the financial exposure from the notice is limited to the proposed tax demand, interest and penalty. The company added that it does not expect the matter to have a material impact on its operations.
The cement maker is currently preparing its response to the show-cause notice and will submit its reply to the tax authorities, according to the company's disclosure. The final liability, if any, will depend on the company's response and the subsequent adjudication process.
The development comes as GST authorities continue to examine tax classification and compliance issues across businesses. A show-cause notice represents a proposed demand and does not by itself constitute a final tax order.
Shares of JSW Cement closed at around INR 115.65 on the BSE on September 24, down about 2.2% from the previous close.
The notice was issued by the Additional Commissioner of Central Tax, Belagavi Audit Commissionerate, and was received by the company on September 24, according to a regulatory filing. The proposed demand relates to the period between April 2022 and March 2024.
The proposed GST liability comprises approximately INR 121.76 crore in Integrated GST (IGST), INR 54.05 crore in Central GST (CGST), and INR 54.05 crore in State GST (SGST).
The tax authorities have proposed the demand under Section 73 of the Central Goods and Services Tax Act, 2017, along with applicable interest and a penalty equivalent to 10% of the tax amount. The notice also cites alleged contraventions involving provisions related to GST payment and reporting.
JSW Cement said the financial exposure from the notice is limited to the proposed tax demand, interest and penalty. The company added that it does not expect the matter to have a material impact on its operations.
The cement maker is currently preparing its response to the show-cause notice and will submit its reply to the tax authorities, according to the company's disclosure. The final liability, if any, will depend on the company's response and the subsequent adjudication process.
The development comes as GST authorities continue to examine tax classification and compliance issues across businesses. A show-cause notice represents a proposed demand and does not by itself constitute a final tax order.
Shares of JSW Cement closed at around INR 115.65 on the BSE on September 24, down about 2.2% from the previous close.
