Did Dalmia Cement Receive GST Show-Cause Notices Totaling Rs 266 Crore?
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Synopsis
Dalmia Cement (Bharat) Limited has received GST show-cause notices totaling Rs 266.3 crore from Tamil Nadu's Sales Tax Office, which may have implications for the company. However, Dalmia Cement assures stakeholders that the notices will not lead to any financial impact.
Key Takeaways
- Dalmia Cement has received show-cause notices totaling Rs 266.3 crore.
- The notices pertain to tax discrepancies for the assessment years 2019–20 and 2022–23.
- The company anticipates no financial impact from these notices.
- The orders were received on November 28, 2025.
- Dalmia Bharat is India’s fourth-largest cement producer.
Mumbai, Nov 30 (NationPress) Dalmia Cement (Bharat) Limited (DCBL), a part of Dalmia Bharat, has been issued two show-cause notices by the Sales Tax Office in Tamil Nadu, amounting to a cumulative total of Rs 266.3 crore.
The notices were served under Section 74 of the Central GST and Tamil Nadu GST Act covering the assessment years 2019–20 and 2022–23.
As per the company’s regulatory disclosures, the Sales Tax Officer located in Lalgudi, Tiruchirapalli has raised demands based on discrepancies identified in taxable turnover and input tax credit (ITC) claims during the aforementioned assessment years.
"We wish to inform that in the adjudication process against Dalmia Cement (Bharat) Limited ("DCBL"), a wholly owned subsidiary of the Company, regarding the 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 noted in its exchange filing.
For the year 2019–20, tax authorities have demanded Rs 128.39 crore in tax, along with a penalty of Rs 19.25 crore.
For 2022–23, the notice requests Rs 59.32 crore in tax and a matching penalty amount. The company received these orders on November 28, 2025.
"The Orders were received on November 28, 2025 at 07:30 P.M," the firm confirmed.
Dalmia Cement has stated that these notices will not result in any financial repercussions for the company. While they did not elaborate on the resolution process, they indicated an expectation of no monetary burden arising from these notices.
"Accordingly, there will be no financial impact on DCBL," the company added in its filing.
Dalmia Bharat, established in 1939, ranks as India’s fourth-largest cement manufacturer, boasting an installed capacity of 49.5 million tonnes per annum.
As per available information on their website, the company is based in New Delhi and operates 15 cement plants across 10 states.
Point of View
The issuance of GST show-cause notices to Dalmia Cement highlights ongoing scrutiny in the corporate sector regarding tax compliance. While the company claims no expected financial repercussions, it raises questions about regulatory practices and transparency in India’s business environment. The implications for stakeholders will be closely monitored by the industry.
NationPress
30/11/2025
Frequently Asked Questions
What are the show-cause notices issued to Dalmia Cement about?
The show-cause notices relate to discrepancies found in taxable turnover and input tax credit claims for the assessment years 2019–20 and 2022–23.
Will these notices affect Dalmia Cement financially?
Dalmia Cement has stated that they do not expect any financial impact from these notices.
What is the total amount of the GST show-cause notices?
The total amount of the GST show-cause notices is Rs 266.3 crore.
What penalties are included in the notices?
For 2019–20, there is a demand for Rs 128.39 crore in tax and a penalty of Rs 19.25 crore. For 2022–23, Rs 59.32 crore is demanded along with an equal penalty.
When were the orders received?
The orders were received by Dalmia Cement on November 28, 2025.
