ACC has received two separate GST demand orders totaling ₹40.13 crore from tax authorities in Punjab and Bihar. The cement manufacturer faces these demands related to alleged excess input tax credit violations under the CGST Act, 2017.

GST Demand Orders Breakdown

The company received two distinct orders with varying demand amounts and penalties from different state authorities.

Nature of Alleged Violations

The GST demands stem from multiple compliance issues identified by the tax authorities. The alleged violations include excess input tax credit availed, excess ITC claimed under the Input Service Distributor mechanism, verification issues with credit notes, ineligible ITC claims, and supplies or tax reduced through amendments.

Company Response and Market Performance

ACC has stated that it will take appropriate steps to appeal against both orders before the relevant authorities. The company does not anticipate any material impact on its financials, operations, or other activities resulting from these demands.

Shares of ACC ended at ₹1,737, gaining ₹4.90 or 0.28% on the BSE, indicating that investors view the GST demands as manageable given the company's financial position and appeal process.

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:

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:

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.