UltraTech Cement Faces GST Challenges: Receives Orders Totaling Rs 18.3 Crore in Demand, Interest and Penalties
In a recent development, UltraTech Cement, a leading player in the cement industry, has encountered legal challenges in the form of Goods and Services Tax (GST) demands issued by the Assistant Commissioner CGST & Central Excise and Joint Commissioner – Central Tax, South Kolkata. The company disclosed this information through a filing with the Bombay Stock Exchange (BSE).
According to the filing, UltraTech Cement is facing two separate orders. The first order confirms a GST demand of Rs 17,60,661, along with applicable interest and a penalty of Rs 1,76,066. The second order is for a GST demand of Rs. 54,252, with interest and a penalty amounting to Rs. 20,000.
This comes on the heels of another order received by the company in November 2023 from the Assistant Commissioner, CGST & C. Ex Division 3, Bhavnagar. The earlier order raised a demand for GST totaling Rs 1.14 crore, inclusive of interest and an equivalent penalty. The demand was linked to an alleged non-payment of differential GST on the royalty of mined limestone.
The regulatory filing detailed that the order confirmed the demand for GST at Rs. 1,14,87,546, with additional interest and penalty amountsing to Rs. 1,14,87,546. The demand was calculated based on the differential GST rate of 13% (18% less 5%) applied to the royalty on mined limestone.
UltraTech Cement, a key player in the cement industry, is likely to evaluate its options and consider legal recourse in response to these GST demands. The company has not yet provided specific details regarding the nature of the allegedly ineligible input tax credit transitioned to GST.
Industry analysts speculate that these developments could impact UltraTech Cement's financials and potentially influence its market standing. Stakeholders and investors will closely monitor the company's response and subsequent actions to address these GST challenges.
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