CERA Sanitaryware Limited has informed stock exchanges about receiving a GST demand order of Rs 44.58 lakhs from tax authorities in Andhra Pradesh. The company disclosed this development under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

GST Demand Order Details

The Deputy Commissioner, Gudur, Chittoor, Andhra Pradesh issued the demand order on 30th March 2026. The order was passed under section 74 of CGST Act, 2017 and corresponding provisions of Andhra Pradesh GST Act, 2017, covering the financial year 2019-2020.

Nature of Allegations

The tax authority has alleged that CERA Sanitaryware committed the following violations:

• Short payment of taxes during FY 2019-2020
• Availing excess Input Tax Credit beyond eligible limits

These allegations form the basis for the substantial demand raised by the Deputy Commissioner's office in Gudur.

Company's Response and Impact Assessment

CERA Sanitaryware has stated that the GST demand will not have any material impact on its financial operations or other business activities. The company expressed confidence in its position, maintaining that the demand order is not maintainable under applicable tax laws.

The sanitaryware manufacturer is preparing to challenge the order through proper legal channels. Company officials indicated they are in the process of filing an appeal against the demand order to contest the allegations made by the tax authority.

Regulatory Compliance

The disclosure was made in compliance with stock exchange listing requirements, ensuring transparency with investors and stakeholders. CERA Sanitaryware's Company Secretary Hemal Sadiwala signed the regulatory filing, which was submitted to both BSE Limited and National Stock Exchange of India Limited on 31st March 2026.

Cera Sanitaryware Limited has informed stock exchanges about receiving a significant income tax demand order worth Rs 27.96 crores from the Assessment Unit, Income Tax Department. The disclosure was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Assessment Order Details

The company received the assessment order dated March 26, 2026, under sections 143(3) read with section 144B of the Income Tax Act, 1961. The order relates to the income tax return filed for financial year 2023-24 (assessment year 2024-25).

Nature of Disallowances

The Assessing Officer has made certain disallowances in the company's tax computation, resulting in the demand being raised under section 156 of the Income Tax Act, 1961. Additionally, the Assessing Officer has issued a show cause notice for penalty under sections 274 read with section 270A of the Income Tax Act, 1961.

Company's Response and Impact

CERA Sanitaryware has expressed its disagreement with the demand order, stating that it believes the demand is not maintainable and lacks merit. The company is in the process of filing an appeal against the assessment order and demand.

Regarding the financial impact, the company has clarified that there is no material impact on its financial operations or other activities. This suggests that the company is confident about its position and expects a favorable outcome from the appellate process.

Regulatory Compliance

The disclosure was made in compliance with SEBI regulations, demonstrating the company's commitment to transparency with stakeholders. Such regulatory filings are mandatory when companies receive significant notices or orders from statutory authorities that could potentially impact their operations or financial position.