Is UltraTech Cement Facing a Rs 390 Crore GST Demand?
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Synopsis
UltraTech Cement Limited has received a tax demand order from the Joint Commissioner of Central Goods and Services Tax and Central Excise, Patna, for alleged dues of Rs 390 crore, including significant penalties. The company plans to contest the order, asserting it won't affect its operations.
Key Takeaways
- UltraTech Cement faces a GST demand of Rs 390 crore.
- The company plans to contest the demand legally.
- Penalties and interest could significantly affect profits.
- UltraTech asserts that operations will not be impacted.
- Upcoming earnings announcement is scheduled for January 24, 2026.
Mumbai, Dec 21 (NationPress) UltraTech Cement Limited has been issued a tax demand notice from the Joint Commissioner of Central Goods and Services Tax and Central Excise in Patna, requesting the company to settle alleged dues amounting to approximately Rs 390 crore.
In addition to this, the firm must also pay a penalty equaling the tax demand and interest estimated at around Rs 28 lakh.
In their regulatory filing, UltraTech Cement Ltd stated that this demand stems from claims of inadequate payment of Goods and Services Tax, misuse of input tax credit, and other related concerns.
“The Company has received an Order from the Joint Commissioner, Central Goods and Services Tax & Central Excise, Patna,” the filing noted.
The case spans the financial years from 2018-19 to 2022-23.
The combined penalty and interest represent nearly two-thirds of the company’s profit of Rs 1,232 crore reported for the second quarter ending September 2025.
During this quarter, the leading cement manufacturer posted impressive results, with revenue increasing by 20.3 percent year-over-year to Rs 19,607 crore.
“Order in Original confirms a tax liability of Rs 3,90,95,58,194, along with applicable interest on the tax demand; additional interest of Rs 27,68,289 and a penalty of Rs 3,90,95,58,194,” the company elaborated.
Nevertheless, UltraTech indicated that they are exploring all legal avenues and intend to contest the order.
They further stated that they do not anticipate the tax demand to adversely affect their operations or financial standing.
The company is set to disclose its earnings for the current third quarter on January 24, 2026.
“The Company is analyzing the Order, reviewing all legal options, and plans to contest the demand, and does not expect this Order to impact its operational or financial status,” they added.
As of now, UltraTech Cement’s shares have remained relatively stable throughout the year. On the most recent trading day, the stock closed at Rs 11,497, with an increase of Rs 36 or 0.31 percent.
Point of View
It is crucial to highlight that while UltraTech Cement faces a substantial GST demand, the company's assertion of its operational stability is noteworthy. Legal avenues are being pursued, which may mitigate potential impacts. This case reflects broader implications for the industry and tax compliance.
NationPress
23/12/2025
Frequently Asked Questions
What is the total GST demand against UltraTech Cement?
The total GST demand against UltraTech Cement is approximately Rs 390 crore.
What penalties are associated with the GST demand?
UltraTech Cement faces a penalty equivalent to the GST demand, along with additional interest of around Rs 28 lakh.
What period does the GST demand cover?
The GST demand covers the financial years from 2018-19 to 2022-23.
How does this demand affect UltraTech's profits?
The combined penalty and interest make up nearly two-thirds of UltraTech's reported profit of Rs 1,232 crore for the second quarter ended September 2025.
What are UltraTech's plans regarding the GST demand?
UltraTech Cement intends to challenge the order and does not expect it to impact its operations or financial position.
