Cera Sanitaryware Ltd , a prominent player in the sanitaryware industry, has received two demand orders totaling Rs 63.11 lakh from the Assistant Commissioner in Medchal Jurisdiction, Telangana. The company disclosed this information in a regulatory filing on September 25, 2025, in compliance with SEBI regulations.

Details of the Demand Orders

The tax authority issued two separate orders on September 24, 2025:

1. The first order, under section 74 of the CGST Act and corresponding Telangana GST Act, demands Rs 40.76 lakh. This amount includes a tax of Rs 20.38 lakh and an equal penalty.

2. The second order, under sections 73 and 74 of the same acts, demands Rs 22.34 lakh, comprising a tax of Rs 11.35 lakh and a penalty of Rs 10.99 lakh.

Allegations and Company's Stance

The Assistant Commissioner alleges that Cera Sanitaryware has:

• Short-paid taxes
• Improperly availed input tax credits blocked under section 17(5) of the GST Act

In response, Cera Sanitaryware has stated that there is no material impact on its financials or operations due to these demand orders. The company believes that the demands are not maintainable and plans to file appeals against both orders.

Company's Disclosure

Hemal Sadiwala, Company Secretary of Cera Sanitaryware Limited, signed the regulatory filing, ensuring transparency with investors and compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Implications

While the total demand of Rs 63.11 lakh is significant, Cera Sanitaryware's confident stance suggests that the company is prepared to challenge the tax authority's claims. The outcome of the appeals, once filed, will be crucial in determining the final financial implications for the company.

Investors and stakeholders will likely keep a close eye on the developments of this case, as it could set a precedent for similar GST-related disputes in the sanitaryware industry.

Cera Sanitaryware Limited has provided an update on its ongoing process to divest its entire stake in its subsidiary, Race Polymer Arts LLP. The company announced that negotiations with its joint venture partner, Shreeyam Ceramic LLP, are making significant progress.

Key Developments

• Substantial Agreement: Cera Sanitaryware reported that they have reached substantial agreement on the terms and conditions of the proposed divestment with Shreeyam Ceramic LLP.

• Timeline: The company expects to execute the necessary documents, including the Retirement Deed, by September 30, 2025.

• Regulatory Compliance: This update was provided as part of the company's obligations under Regulation 30 of the SEBI (LODR) Regulations, 2015.

Background

The latest announcement follows Cera Sanitaryware's earlier communication dated September 2, 2025, where the company initially disclosed its intention to divest its stake in Race Polymer Arts LLP.

Management Statement

In an official intimation to the stock exchanges, Hemal Sadiwala, Company Secretary of Cera Sanitaryware Limited, stated, "The terms and conditions of the proposed divestment have been substantially agreed upon, and the necessary documents and agreements, including the Retirement Deed, will be executed by 30th September 2025."

This development signifies Cera Sanitaryware's strategic move to restructure its business holdings. Investors and stakeholders will be keenly watching the finalization of this divestment process and its potential impact on the company's future operations and financial performance.

As the September 30, 2025 deadline approaches, market participants can expect further updates from Cera Sanitaryware regarding the completion of this significant transaction.