Shree Cement Receives GST Demand Order Worth ₹69.14 Lakh from Karnataka Tax Authorities

Shree Cement Limited has received a GST demand order from tax authorities in Karnataka, as disclosed in a regulatory filing on December 30, 2025. The cement manufacturer received the order from the Assistant Commissioner, Central Tax & Central Excise, Gulbarga Division, Karnataka on the same date.

GST Demand Details

The demand order issued in Form GST DRC-07 confirms a tax demand along with penalties and interest. The financial implications of the order are detailed below:

Component	Amount
Tax Demand	₹69.13 lakh
Penalty	₹69.13 lakh
Interest	Applicable (amount not specified)
Total Base Demand	₹1.38 crore (excluding interest)

Nature of Alleged Violation

The GST demand order pertains to alleged non-payment of GST by the company. The Assistant Commissioner has issued the demand under the provisions of the GST law, requiring the company to pay the specified amount along with applicable interest and penalty.

Company's Response and Next Steps

Shree Cement has indicated its disagreement with the contentions raised in the demand order. The company has outlined its planned course of action:

Parameter	Details
Company's Stance	Contentions not agreed
Planned Action	Appeal under Section 107 of Karnataka GST Act
Filing Deadline	On or before March 29, 2026
Time Limit	Within 3 months from order communication date

Financial Impact Assessment

According to the company's disclosure, the GST demand order is expected to have no major financial impact on Shree Cement's operations. The company has assessed that while the demand amount is significant in absolute terms, it does not materially affect the overall financial position or operational activities of the entity.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with stakeholders regarding regulatory actions that could potentially impact the company.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.26%	+3.72%	+4.77%	-12.76%	+5.45%	+10.05%

Shree Cement Limited has received a demand order from Punjab tax authorities totaling ₹80.79 lakh, comprising tax demand, interest, and penalty components. The cement manufacturer disclosed this development to stock exchanges in compliance with regulatory requirements.

GST Demand Order Details

The Excise & Taxation Officer, State Tax, Mohali, Ropar, Punjab issued a demand order in Form GST DRC-07 against the company. The order pertains to alleged violations in Input Tax Credit availment.

Component	Amount (₹)
Tax Demand	33,63,748
Interest	43,79,310
Penalty	3,36,374
Total Demand	80,79,432

Nature of Alleged Violation

The tax authorities have alleged wrong availment of Input Tax Credit by the company. This forms the basis for the demand order issued under GST regulations. The company has indicated that it does not agree with the contentions raised by the authorities.

Company's Response and Financial Impact

Shree Cement has stated that the order will have no major financial impact on the company's operations. The management has expressed disagreement with the allegations.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The information was submitted to both National Stock Exchange of India Limited and BSE Limited as part of the company's ongoing compliance obligations.