JK Cement gets relief as GST demands of ₹10.28 crore partly allowed
J. K. Cement Limited reported that the Additional Commissioner (Appeals), SGST, Kota, partly allowed its appeals against GST demands for FY 18-19 and FY 2020-21. The authority dropped demands of ₹2,99,95,934 and ₹7,28,33,509, respectively, while confirming minimal amounts of ₹9,83,196 and ₹65,984 along with penalties. The company stated the orders lack major financial impact and will appeal the confirmed demands to the GSTAT.
*this image is generated using AI for illustrative purposes only.
J. K. Cement Limited secured partial relief in Goods and Services Tax (GST) disputes after the Additional Commissioner (Appeals), SGST, Kota, partly allowed appeals for FY 18-19 and FY 2020-21. The orders, received on July 3, 2026, resulted in the dropping of substantial tax demands totaling over ₹10 crore, though minimal amounts were confirmed with interest and penalty. The company stated that the orders do not have a major financial impact and intends to challenge the confirmed demands before the GSTAT within the statutory timeline.
The appeals addressed demand orders issued by the Deputy Commissioner-A, Business Audit Wing in Rajasthan, Jaipur. For FY 18-19, the original demand of ₹2,99,95,934 dated March 28, 2024, was dropped. A minimal demand of ₹9,83,196 was confirmed, along with applicable interest and a penalty of ₹1,02,240. Similarly, for FY 2020-21, the authority dropped a demand of ₹7,28,33,509 dated February 17, 2025. A nominal demand of ₹65,984 was confirmed, with interest and a penalty of ₹10,000.
The allegations in both cases involved the wrong availment of Input GST, specifically claims that the credits were not matched with GSTR 2B/2A. While the appeals were partly allowed, J. K. Cement maintains that the contentions imposing the remaining demand are not agreed upon. The company believes it has a strong case on merits regarding the confirmed amounts.
The following table details the outcomes of the appeals for the two financial years:
| Sr. No. | Particulars | Details (FY 18-19) | Details (FY 2020-21) |
|---|---|---|---|
| 1 | Name of the Authority | Additional Commissioner (Appeals) State Tax, Kota (Rajasthan) | Additional Commissioner (Appeals) State Tax, Kota (Rajasthan) |
| 2 | Demand Dropped | ₹2,99,95,934 | ₹7,28,33,509 |
| 3 | Demand Confirmed | ₹9,83,196 | ₹65,984 |
| 4 | Penalty | ₹1,02,240 | ₹10,000 |
| 5 | Date of Order Receipt | July 03, 2026 | July 03, 2026 |
J. K. Cement disclosed that it will file an appeal before the GSTAT against the confirmed demands. The company emphasized that the financial impact of these orders is not material to its operations.
Historical Stock Returns for JK Cement
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.38% | +1.42% | +13.17% | -6.17% | -13.62% | +78.69% |
What is the expected timeline for the GSTAT proceedings regarding the challenge to the confirmed demands?
How might this partial relief influence J. K. Cement's strategy for handling pending GST litigations in other jurisdictions?
Could the authority's stance on GSTR 2B/2A matching in this case set a precedent for similar disputes in the cement industry?
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