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.

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.