UltraTech cement Limited has received a significant order from GST authorities in Uttarakhand, disclosing a tax demand of ₹53.81 crores along with penalties under Regulation 30 of SEBI listing requirements. The cement major communicated this development to stock exchanges on 31st March, 2026.

GST Authority Order Details

The Additional Commissioner, Central Goods and Services Tax, Dehradun, Uttarakhand has passed an Order in Original confirming substantial financial demands against the company. The order encompasses multiple components of tax liability and penalties spanning several financial years.

Nature of Alleged Violations

The GST order addresses alleged violations spanning five financial years from FY 2019-20 to FY 2023-24. The authorities have identified two primary areas of concern in their assessment:

• Differential tax liability: Issues related to tax calculations and payments
• Non-reversal of Input Tax Credit (ITC): Alleged failure to reverse input tax credits as required under GST regulations

These violations form the basis of the substantial tax demand and penalty imposed by the GST authorities.

Company's Response and Financial Impact

UltraTech Cement has indicated its intention to challenge the GST authority's order through appropriate legal channels. The company has provided a clear assessment of the potential financial implications of this development.

The company's confidence in contesting the order suggests it believes there are grounds to challenge the GST authority's findings and calculations.

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. Company Secretary and Compliance Officer Dhiraj Kapoor signed the communication to BSE Limited and National Stock Exchange of India Limited, ensuring transparency with stakeholders and regulatory authorities.

UltraTech Cement has received a maintained Buy rating from HSBC with a target price of Rs 13,750. The global brokerage firm's outlook is based on expected capacity expansion trends and supply-demand dynamics in the cement sector.

Capacity Expansion and Market Dynamics

HSBC expects UltraTech Cement's capacity additions to peak in FY27. The brokerage anticipates that supply-demand conditions will improve from FY28 onwards, creating a more favorable operating environment for the cement manufacturer.

Expected Price Adjustments

The brokerage firm expects price hikes during the April-May period, which should help UltraTech Cement fully pass through higher energy costs to customers. This pricing strategy is viewed as crucial for maintaining margins amid rising input costs.

Market Outlook

The maintained Buy rating reflects HSBC's confidence in UltraTech Cement's ability to navigate the current market challenges through strategic capacity management and pricing adjustments. The expected improvement in supply-demand balance from FY28 is seen as a key factor supporting the positive outlook.