Did Dalmia Cement (Bharat) Receive GST Show-Cause Notices Worth Rs 266 Crore?
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Synopsis
Dalmia Cement (Bharat) finds itself in the spotlight as it faces a substantial Rs 266 crore in GST show-cause notices from Tamil Nadu's Sales Tax Office. This development raises questions about the implications for the company and the cement industry at large.
Key Takeaways
- Dalmia Cement faces GST show-cause notices totaling Rs 266.3 crore.
- Notices are based on discrepancies in taxable turnover and ITC claims for 2019–20 and 2022–23.
- The company asserts there will be no financial impact.
- Dalmia Bharat is India's fourth-largest cement producer.
- Company operates 15 cement plants across 10 states.
Mumbai, Nov 30 (NationPress) Dalmia Cement (Bharat) Limited (DCBL), a subsidiary of Dalmia Bharat, has been issued two show-cause notices by the Sales Tax Office in Tamil Nadu, totaling Rs 266.3 crore.
The notices were filed under Section 74 of both the Central GST and Tamil Nadu GST Act, pertaining to the assessment years 2019–20 and 2022–23.
As per the company’s regulatory filing, a Sales Tax Officer in Lalgudi, Tiruchirapalli, has raised demands based on discrepancies found in taxable turnover and input tax credit (ITC) claims during these assessment years.
“We wish to inform that in an adjudication proceedings against Dalmia Cement (Bharat) Limited (“DCBL”), wholly owned subsidiary of the Company, related to two show cause notices issued under section 74 of the Central GST/Tamil Nadu GST Act 2017 for AY 2019-20 and AY 2022-23,” the firm stated in its exchange filing.
For 2019–20, authorities have demanded Rs 128.39 crore in tax along with a penalty of Rs 19.25 crore.
For 2022–23, the notice seeks Rs 59.32 crore in tax and a corresponding penalty. The orders were received by the company on November 28, 2025.
“The Orders were received on November 28, 2025 at 07:30 P.M,” the firm noted.
Dalmia Cement has confirmed that these notices will not impose any financial burden on the company. While details on the resolution were not disclosed, they indicated that they anticipate no monetary impact as a result of the notices.
“Accordingly, there will be no financial impact on DCBL,” the company added in its filing.
Founded in 1939, Dalmia Bharat is India’s fourth-largest cement manufacturer with an installed capacity of 49.5 million tonnes per annum.
The company, which is headquartered in New Delhi, operates 15 cement plants across 10 states.
Point of View
The issuance of GST show-cause notices to Dalmia Cement (Bharat) Limited reflects ongoing scrutiny within the corporate sector. While the company asserts that this will not lead to financial repercussions, the case underscores the importance of compliance and transparency in business operations. As the fourth-largest cement producer in India, the outcome of this situation could have broader implications for the industry.
NationPress
30/11/2025
Frequently Asked Questions
What are the GST show-cause notices against Dalmia Cement?
Dalmia Cement (Bharat) Limited received two show-cause notices from the Tamil Nadu Sales Tax Office, totaling Rs 266.3 crore, related to discrepancies in taxable turnover and input tax credit claims.
What is the potential financial impact on Dalmia Cement?
Dalmia Cement has stated that these notices will not have any financial impact on the company.
When did Dalmia Cement receive these notices?
The notices were received by Dalmia Cement on November 28, 2025.
What is the background of Dalmia Bharat?
Dalmia Bharat was established in 1939 and is the fourth-largest cement producer in India, with an installed capacity of 49.5 million tonnes per annum.
Where is Dalmia Bharat headquartered?
Dalmia Bharat is headquartered in New Delhi and operates 15 cement plants across 10 states.
