JSW Cement faces Rs 7.56 cr GST demand notice
JSW Cement received a Demand-cum-Show Cause Notice from the Office of the Additional Commissioner Central Tax (Audit), Patna on May 15, 2026. The notice proposes a GST demand of approximately Rs. 7,55,84,148 plus interest and penalty for alleged irregularities spanning FY 2020-21 to FY 2022-23. The company stated it is in the process of filing a reply to the authorities.
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JSW Cement Limited has disclosed the receipt of a Demand-cum-Show Cause Notice from the Office of the Additional Commissioner Central Tax (Audit), Patna. The notice was issued on May 15, 2026, under Section 74 of the CGST Act, 2017. The company has informed the stock exchanges that it is in the process of filing a reply to the said matter.
Nature of Allegations
The Show Cause Notice covers multiple alleged tax irregularities spanning fiscal years FY 2020-21 to FY 2022-23. The key allegations outlined in the notice include unreconciled tax liability between books of accounts and GSTR-9, deemed supply discrepancies, and the treatment of trade discounts. The department also contends that the company availed excess Input Tax Credit (ITC) compared to GSTR-2A and failed to discharge Reverse Charge Mechanism (RCM) liability. Other issues cited include delays in filing GSTR-3B, differences between GSTR-1 and GSTR-3B declarations, and ITC claimed on wrong place of supply.
Proposed Financial Demand
The Show Cause Notice proposes a GST demand aggregating to approximately Rs. 7,55,84,148, in addition to applicable interest and penalty. The demand has been raised invoking the provisions of Section 9, Section 16, Section 37, Section 39, and Section 47 of the CGST Act, 2017, and the Rules thereunder.
| Particulars | Amount |
|---|---|
| IGST | Rs. 1,21,54,554/- |
| CGST | Rs. 3,17,14,797/- |
| SGST | Rs. 3,17,14,797/- |
| Total GST Demand (approx.) | Rs. 7,55,84,148/- |
| Interest and Penalty | Applicable |
Company Response
JSW Cement has stated that it is in the process of filing a reply to the Show Cause Notice. The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The information has also been uploaded on the company's website at www.jswcement.in .
Historical Stock Returns for JSW Cement
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.19% | +0.21% | +1.85% | +9.52% | -12.80% | -12.80% |
If JSW Cement's reply is rejected and the full demand of Rs. 7.55 crore plus interest and penalty is upheld, what would be the cumulative financial impact given any other pending GST or tax disputes the company may be facing?
Could the alleged ITC irregularities and RCM non-compliance identified for FY 2020-23 signal potential scrutiny of JSW Cement's GST filings for subsequent fiscal years?
How might repeated GST compliance issues across multiple categories affect JSW Cement's credit ratings or investor confidence ahead of any planned capital market activities?
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