JSW Cement receives ₹10.27 crore GST demand notice from Kolkata tax authorities
JSW Cement disclosed a ₹10.27 crore GST demand notice from Kolkata tax authorities, citing alleged ITC irregularities and short payments from FY21 to FY24. The company asserts no material impact on its finances and is preparing a reply to the notice issued under Section 74 of the CGST Act 2017.
*this image is generated using AI for illustrative purposes only.
JSW Cement received a show cause cum demand notice from the Joint Commissioner, Central Tax (Audit), Kolkata on August 18, 2026. The notice proposes a total demand of ₹10.27 crore, comprising IGST of ₹3.89 crore, CGST of ₹3.19 crore, and SGST of ₹3.19 crore, along with applicable interest and equivalent penalties.
The company disclosed the matter under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. It stated that while the financial impact is limited to the proposed demand, penalty, and interest, there is no material impact on the company’s overall operations or financial health. JSW Cement is currently in the process of filing a reply to the notice.
Alleged Contraventions
The notice was issued under Section 74 of the CGST Act 2017, read with corresponding provisions of the WBGST Act 2017. It highlights several alleged discrepancies regarding Input Tax Credit (ITC) and GST payments between fiscal years 2020-21 and 2023-24.
Key allegations include:
- Availment of blocked or ineligible ITC for FY21 to FY24.
- Excess availment of ITC for FY21 based on Form GSTR-9 filings.
- Mismatch in ITC availment between Form GSTR-3B and Form GSTR-2A for FY21.
- Short payment of GST on finished goods consumed for FY21 to FY24.
- Excess ITC availment vis-à-vis tax paid under the Reverse Charge Mechanism (RCM) for FY21 to FY23.
- Short payment of GST under RCM based on Form GSTR-9 disclosures for FY21 and FY24.
- Short payment of GST due to turnover differences between books of account and GST returns for FY21.
What the Numbers Show
The proposed demand breaks down into three distinct tax components, reflecting the nature of the alleged contraventions across different jurisdictions. IGST constitutes the largest share at ₹3.89 crore, followed by equal contributions from CGST and SGST at ₹3.19 crore each. This distribution suggests that the alleged errors involve both inter-state transactions (IGST) and intra-state supplies (CGST/SGST), requiring a comprehensive review of the company’s input credit claims and output liability calculations across these periods.
Historical Stock Returns for JSW Cement
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.87% | -5.98% | -12.04% | +0.05% | -17.57% | -15.34% |
How might the outcome of JSW Cement's reply to the show cause notice influence investor sentiment and short-term stock volatility?
Could this GST notice trigger a broader regulatory scrutiny of Input Tax Credit practices across other major players in the Indian cement sector?
What are the potential long-term operational costs for JSW Cement if similar discrepancies are identified in future audits beyond FY2024?
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