JSW Cement Limited has received a significant tax order from the Additional Commissioner, CGST & C.X. Haladia Commissionerate, West Bengal, involving disallowance of input tax credit and penalty imposition worth Rs 6,88,81,340 each. The company disclosed this development through a regulatory filing dated March 27, 2026, pursuant to Regulation 30 of SEBI Listing Regulations.

Order Details and Allegations

The tax authority has passed an order alleging suppression of facts under provisions of section 74. According to the order, the company availed Input Tax Credit (ITC) in excess of the ITC available in table 8A of GSTR9, thereby violating section 16 conditions. This has resulted in what the authority terms as "wrong availment" leading to disallowance of ineligible ITC.

Company's Response and Next Steps

JSW Cement has expressed strong disagreement with the tax order, stating that it believes the order is incorrect and has not considered the merits of the company's contentions. The company has indicated that it is in the process of filing an appeal against this decision with the appropriate authority.

Regarding the financial impact, the company has clarified that while the financial impact extends to the demand and penalty imposed, there is no material impact on the company's operations. The company intends to pursue legal remedies through the appellate process.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also uploaded the relevant information on its official website at www.jswcement.in for stakeholder access.

The filing was signed by Sneha Bindra, Company Secretary and Compliance Officer, and includes detailed annexures as per SEBI Master Circular requirements, providing comprehensive information about the nature of the order and its potential implications.

JSW Cement Limited has officially incorporated a wholly owned subsidiary in the United Arab Emirates, completing its strategic expansion into the Middle East market. The subsidiary, named JSW CEMENT MIDDLEEAST L.L.C – SPC, was incorporated on March 24, 2026, under the jurisdiction of Fujairah Municipality with a share capital of AED 1.00 lakh.

Official Incorporation Details

The company filed its regulatory intimation under Regulation 30 of SEBI Listing Regulations on March 25, 2026, providing comprehensive details of the subsidiary establishment:

Strategic Business Expansion

The UAE subsidiary has been established specifically to undertake cement business and other allied activities in the Middle East region. This incorporation represents JSW Cement's measured approach to international market entry, establishing foundational presence in a strategically important market.

Regulatory Compliance and Structure

The subsidiary incorporation received necessary approvals from Fujairah Municipality, ensuring full regulatory compliance. The share capital subscription of AED 1.00 lakh was made in cash by JSW Cement Limited through ordinary shares of the newly incorporated company.

Market Positioning Impact

The establishment of JSW CEMENT MIDDLEEAST L.L.C – SPC enables the parent company to establish direct operational presence in the UAE market while exploring broader regional opportunities. This strategic move positions JSW Cement to capitalize on infrastructure development and construction activities across the Middle East region, enhancing its international operational capabilities and global market presence.