ACC Limited Receives GST Demand Order of Rs 59.81 Crores, Plans to Contest
ACC Limited received a GST demand order of Rs 59,80,58,854 including interest and penalty from Kerala tax authorities on April 10, 2026. The order under Section 74 of CGST/KSGST Act alleges violations including excess ITC availment, irregular post supply discount deductions, and blocked ITC availment. The company plans to contest the order and expects no material impact on operations.
*this image is generated using AI for illustrative purposes only.
ACC Limited has received a significant tax demand order from GST authorities, imposing a liability of Rs 59,80,58,854 including interest and penalty. The cement manufacturer disclosed this development to stock exchanges on April 11, 2026, as part of its regulatory compliance obligations.
Order Details and Authority
The order was issued under Section 74 of the CGST/KSGST Act, 2017 by the Joint Commissioner Taxpayer Services Circle, Thalassery, Kannur, Kerala. The company received this order on April 10, 2026.
| Parameter: | Details |
|---|---|
| Issuing Authority: | Joint Commissioner Taxpayer Services Circle, Thalassery, Kannur, Kerala |
| Order Date Received: | April 10, 2026 |
| Total Demand Amount: | Rs 59,80,58,854 |
| Components: | Principal amount, interest, and penalty |
| Legal Provision: | Section 74 of CGST/KSGST Act, 2017 |
Alleged Violations
The GST department has raised the demand based on several alleged contraventions. The order cites excess availment of Input Tax Credit (ITC) in GSTR 3B vis-Ã -vis GSTR 2A as one of the primary issues. Additionally, the authorities have alleged irregular deduction of post supply discounts by the company.
Other violations mentioned in the order include:
- Availment of blocked ITC under Section 17(5) of the CGST Act, 2017
- Non-reversal of ITC on goods lost where insurance compensation was received
Company's Response and Impact Assessment
ACC Limited has announced its intention to contest the order before appropriate authorities within the prescribed timeline. The company maintains that it does not foresee any material impact on its financial, operational, or other activities due to this order.
The disclosure was made in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The company has also uploaded this intimation on its official website at www.acclimited.com for stakeholder information.
Regulatory Compliance
The intimation follows the requirements under SEBI Master Circular bearing reference number HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. Company Secretary Bhavik Parikh signed the disclosure document digitally on April 11, 2026, ensuring proper documentation and transparency in regulatory reporting.
Historical Stock Returns for ACC
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.35% | +7.44% | -1.79% | -24.01% | -28.29% | -27.34% |
How might this GST dispute affect ACC Limited's quarterly earnings and cash flow if the appeal process extends beyond the current financial year?
Could this tax demand signal broader GST compliance scrutiny across the cement industry, potentially impacting other major players?
What precedent might ACC's appeal outcome set for similar Input Tax Credit disputes in capital-intensive manufacturing sectors?
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