UltraTech Cement, India's leading cement producer, has announced it will legally contest a substantial Goods and Services Tax (GST) demand notice amounting to Rs 782.2 crore. The notice was issued by tax authorities on Friday.
Details of the GST Demand Notice
In a regulatory filing made on Saturday, the Aditya Birla Group flagship stated that the demand pertains to the financial period spanning from 2018-19 to 2022-23. The authorities have raised the claim on grounds of alleged short payment of GST and what they term as improper utilisation of Input Tax Credit (ITC), among other related issues.
The company has expressed its disagreement with the order, stating it was passed "without due consideration of the Company’s submissions." UltraTech Cement is currently reviewing the detailed order and evaluating all available legal avenues to challenge it.
Breakdown of the Tax Liability
The formal order, issued by the Joint Commissioner, Central Goods and Services Tax and Central Excise, Patna, upholds a significant financial liability. The core tax demand stands at a staggering Rs 3,90,95,58,194.
In addition to the principal tax amount, the notice includes applicable interest on this demand, an extra interest component of Rs 27,68,289, and a penalty matching the tax demand at Rs 3,90,95,58,194. The total of these components aggregates to the Rs 782.2 crore figure.
Company's Stance and Next Steps
UltraTech Cement has confirmed its intent to fight the order. "The Company is reviewing the Order, considering all legal options, and accordingly would be contesting the demand," it stated in the filing.
This development comes from the nation's largest cement manufacturer, which boasts a production capacity close to 200 million tonnes per annum. The company's decision to challenge the notice highlights a significant dispute over GST interpretation and compliance during the cited five-year period.
