JSW Cement received a show cause notice on August 25, 2026, from the Haldia CGST & CX Commissionerate alleging excess input tax credit (ITC) of ₹13,90,55,461 during FY21.

The Joint Commissioner issued the notice under Section 74 of the CGST Act 2017, citing discrepancies identified through DGARM analysis and reconciliation of GSTR-3B, GSTR-9, and GSTR-2A data. The department contends the credit lacks support from supplier-reported records.

Notice Details

The notice proposes a total GST demand of ₹13,90,55,461, broken down as follows:

The department also proposes applicable interest and equivalent penalty under Sections 16(2), Rule 36(4), Sections 39, 41, and 155 of the CGST Act. The allegations include suppression of facts and willful misstatement.

Company Response

JSW Cement stated that the difference arose due to import IGST being reported under the wrong column in GSTR-3B. The department rejected this defense due to lack of invoice-wise correlation and errors in the submitted reconciliation.

The company is in the process of filing a reply to the notice. It disclosed that while the financial impact is limited to the proposed demand, penalty, and interest, there is no material impact on the company.

JSW Cement received a show cause notice on August 20, 2026, from the Additional Commissioner, Central Tax (Audit), Guntur. The notice proposes a Goods and Services Tax (GST) demand of ₹81.03 crore for the period FY21 to FY23.

The company disclosed the development under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The tax authority issued the notice under Section 74 of the CGST Act 2017, read with corresponding provisions of the APGST Act 2017.

Allegations in the Notice

The notice cites multiple alleged contraventions regarding tax compliance over the three-year period. Key allegations include:

• Irregular reduction of post-sale discount amounts from taxable value without meeting conditions under Section 15 of the CGST Act 2017.
• Short payment of GST due to incorrect classification and wrong adoption of tax rates.
• Failure to furnish proof of supply for authorized operations regarding supplies made to Special Economic Zone (SEZ) units.
• Wrong or excess availment of Input Tax Credit (ITC) due to invoices not reflecting in GSTR-2A/2B, non-filing of GSTR-3B by suppliers, and excess distribution of credit by Input-Service Distributors (ISD).
• Non-payment of tax under reverse charge mechanism on inward supplies liable to reverse charge as reflected in GSTR-2A.
• Non-payment of interest on net cash liability for delay in filing monthly returns.

Financial Implications

The proposed demand breaks down into IGST, CGST, and APGST components. The company stated that while the financial impact extends to the proposed demand, penalty, and interest, there is no material impact on its operations.

The total figure includes applicable interest and equivalent penalties towards alleged contraventions of Sections 9, 15, 16, 17, 20, and 34 of the CGST Act 2017, Section 16 of the IGST Act 2017, and related rules.

Company Response

JSW Cement confirmed it is in the process of filing a reply to the notice. The disclosure was signed by Sneha Bindra, Company Secretary and Compliance Officer, on August 21, 2026.