Shree Cement Limited has received a significant GST demand order from tax authorities in Karnataka, marking a regulatory development that the company has disclosed to stock exchanges.

GST Demand Order Details

The Joint Commissioner, Central Tax Central Excise, Belagavi, Karnataka, has issued a demand order against Shree Cement Limited with substantial financial implications:

Nature of Alleged Violation

The demand order pertains to the alleged availment of ineligible input tax credit by the company. Input tax credit allows businesses to reduce their tax liability by claiming credit for taxes paid on inputs, but the authorities have contested the eligibility of certain credits claimed by Shree Cement.

Company's Response and Financial Impact

Shree Cement has indicated that the order will have no major financial impact on the company's operations. The management has stated that they do not agree with the contentions raised in the demand order, suggesting they will contest the allegations.

Legal Recourse

The company plans to appeal against the demand order. They intend to challenge the order through the appropriate legal channels under Section 107 of the Karnataka GST Act.

Regulatory Compliance

The disclosure has been made pursuant to Regulation 30 read with Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulatory framework requires listed companies to promptly inform stock exchanges about material developments that could impact their operations or financial position.

Shree Cement has formally communicated this development to both the National Stock Exchange of India Limited and BSE Limited, ensuring compliance with listing obligations and maintaining transparency with stakeholders.

Shree Cement Limited has announced a lockout at its cement manufacturing facility in Baloda Bazar, Raipur, Chhattisgarh, effective December 18, 2025. The company disclosed this development to stock exchanges on December 19, 2025, in compliance with Regulation 30 of the SEBI Listing Regulations.

Lockout Details and Impact

The lockout was declared due to non-cooperation of workmen at the Baloda Bazar cement plant. This operational disruption is expected to significantly impact the company's production capacity at the affected facility.

Production and Financial Impact

Based on current operations, the company estimates a daily cement production loss of around 10,000 tons due to the lockout. This represents a substantial impact on the facility's output capacity during the period of work stoppage.

Shree Cement is currently in the process of ascertaining the total quantum of loss and damage caused by the lockout. However, the company has confirmed that all assets at the facility are covered by insurance, which may help mitigate potential financial losses.

Company Response and Monitoring

Shree Cement's management stated that they are actively monitoring the situation at the Baloda Bazar plant. The company has committed to providing updates on further developments as the situation evolves. The disclosure was made in accordance with regulatory requirements under SEBI's listing obligations and disclosure norms.

The lockout represents a temporary operational challenge for Shree Cement, with the company working to address the underlying issues that led to the work stoppage. The resolution timeline and potential impact on overall quarterly production figures will depend on how quickly the company can resolve the worker cooperation issues at the facility.