Shree cement Limited has disclosed receiving a significant GST demand order from tax authorities in Belagavi, Karnataka. The cement manufacturer informed stock exchanges about the regulatory action through a filing under SEBI disclosure requirements.

GST Demand Details

The Joint Commissioner, Central Tax & Central Excise, Belagavi has issued a demand order against Shree Cement for alleged tax violations. The financial implications of this order are substantial:

The order was dated February 23, 2026, and received by the company on February 24, 2026. The demand stems from allegations of wrong availment of input tax credit, a common area of GST compliance scrutiny.

Company's Response and Legal Action

Shree Cement has indicated its disagreement with the tax authorities' contentions. The company has outlined its planned legal response:

• Appeal Filing: The company will file an appeal under Section 107 of the Karnataka GST Act
• Timeline: Appeal to be filed on or before May 23, 2026 (within three months from order communication date)
• Financial Impact: Company states the order has no major financial impact on operations

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary Shyam Sunder Khandelwal signed the regulatory filing, ensuring compliance with stock exchange notification requirements.

The company has provided detailed information about the nature of violations alleged by tax authorities, focusing on input tax credit availment practices. Such GST disputes are not uncommon in the cement industry, where complex supply chains and multiple tax jurisdictions can lead to compliance challenges.

Business Operations Continuity

Despite the significant monetary value of the demand, Shree Cement has emphasized that the order will not materially affect its financial position or operational activities. The company's confidence in challenging the order through legal channels suggests strong internal assessment of its GST compliance practices.

Shree Cement has officially commissioned a new clinkerisation section at its Kodla facility on February 24, 2026, as disclosed under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015. The commissioning marks a significant milestone in the company's capacity expansion strategy at its integrated cement plant in Village Kodla, Kalaburagi District of Karnataka.

Official Commissioning Details

The company formally announced the commissioning through a regulatory filing to both NSE and BSE. The disclosure was signed by Company Secretary S.S. Khandelwal and submitted to the stock exchanges on the same day as the commissioning.

Enhanced Manufacturing Capabilities

With the commissioning of this new clinkerisation section, Shree Cement has successfully increased its total clinker capacity at the Kodla facility to 7.15 MTPA. The new section is part of the company's integrated cement plant being established at the Kodla location. This expansion demonstrates the company's focus on scaling up its manufacturing operations and meeting growing market demand in the cement sector.

Regulatory Compliance and Strategic Impact

The commissioning was disclosed in compliance with SEBI regulations, highlighting the company's commitment to transparency and regulatory adherence. The 3.65 MTPA addition represents a substantial enhancement to Shree Cement's manufacturing portfolio. This development positions the company to better serve market requirements and supports its growth trajectory in the cement manufacturing sector, particularly in the Karnataka region where the Kodla facility is strategically located.