ACC Limited Faces Total GST Demands of ₹209 Crores Across Multiple Orders
ACC Limited has received three GST demand orders totaling ₹209.34 crores from tax authorities in Nagpur, Coimbatore, and Panchkula for various compliance issues including excess ITC claims, turnover mismatches, and tax liability discrepancies. The company will contest all orders through appeals and expects no material impact on its financial or operational activities given its strong balance sheet position.
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ACC Limited , a prominent cement manufacturer, is facing significant GST scrutiny with multiple demand orders from tax authorities totaling over ₹209 crores. The company has now received three separate GST orders, with the latest two orders received on December 30, 2025, substantially increasing the total demand amount.
Latest GST Orders Overview
The company received two additional major GST orders on December 30, 2025, significantly escalating the total tax demand:
| Authority | Total Demand (₹) | Tax Component (₹) | Penalty (₹) | Interest (₹) |
|---|---|---|---|---|
| Deputy Commissioner, Nagpur | 34,06,67,810 | 12,76,22,339 | 2,28,87,811 | 19,01,57,660 |
| Assistant Commissioner, Coimbatore | 1,69,64,06,846 | 1,53,81,80,778 | 15,82,26,068 | Payable u/s 50(1) |
| Additional Commissioner, Panchkula | 5,63,60,356 | 5,12,36,686 | 51,23,670 | Applicable u/s 50 |
| Total Across All Orders | ₹209.34 crores | ₹171.70 crores | ₹18.62 crores | ₹19.02 crores+ |
Nature of Violations and Contraventions
The GST orders cover a wide range of compliance issues across different jurisdictions:
Nagpur Zone Order
- Mismatch in Tax Liability
- Disallowance of certain credit notes
- Excess Input Tax Credit (ITC) claimed
- ITC on imports and ineligible credits
- Reverse Charge Mechanism (RCM) on Goods Transport Agency and royalty on minerals
- GST liability on asset sales
Coimbatore Order
- Turnover reconciliation discrepancies between GSTR-9 and GSTR-9C
- ITC mismatch in Table 8 of GSTR-9
- Credit note ITC reversal issues
- ITC mismatch between GSTR-3B and GSTR-2B
- Various expense categories including freight, employee benefits, and purchase of stock-in-trade
Panchkula Order
- Disallowed excess Input Tax Credit claims in GSTR-3B return
Company's Response Strategy
ACC Limited has consistently stated its intention to contest all orders through appropriate legal channels. The company plans to file appeals before the respective appellate authorities within prescribed timelines. Management maintains that these developments will not have any material impact on the company's financial, operational, or other activities.
Financial Context and Impact Assessment
Despite the substantial GST demands, ACC Limited's strong financial position provides context for its ability to manage these challenges:
| Financial Metrics (₹ crore) | March 2025 | March 2024 | Change (%) |
|---|---|---|---|
| Total Assets | 24,923.00 | 22,899.70 | +8.84% |
| Current Assets | 8,981.10 | 9,508.80 | -5.55% |
| Total Equity | 18,270.90 | 16,022.00 | +14.04% |
| Current Liabilities | 5,604.30 | 6,050.50 | -7.37% |
The total GST demand of ₹209.34 crores represents approximately 0.84% of the company's total assets, suggesting the company has sufficient financial resources to handle these obligations if required.
Regulatory Compliance and Disclosure
The company has made appropriate disclosures under Regulation 30 of SEBI Listing Regulations and relevant SEBI circulars. All information has been made available on the company's website at www.acclimited.com , ensuring transparency with stakeholders and regulatory compliance.
Historical Stock Returns for ACC
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.07% | -5.40% | -15.93% | -26.46% | -27.13% | -22.31% |
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