Shree Cement Limited announced the receipt of a significant GST demand order from the Joint Commissioner, Central Tax & Central Excise, Belagavi, dated February 23, 2026. The demand, totaling ₹7,79,78,359 along with an equivalent penalty, pertains to the alleged wrong availment of input tax credit. The company strongly disagrees with the findings and plans to file an appeal within the stipulated timeline.
Disclosure of Tax Demand Order
Shree Cement Limited has officially disclosed the receipt of an adverse order concerning tax demands levied by the Central Tax & Central Excise authorities in Belagavi. The official communication detailing this matter was received by the Company on February 24, 2026, relating to an order dated February 23, 2026.
Details of the Demand
The core of the dispute revolves around the alleged wrong availment of input tax credit by the Company. The Demand Order received confirms a tax demand amounting to Rs. 7,79,78,359/-. Crucially, an equivalent penalty of Rs. 7,79,78,359/- has also been imposed along with the principal tax demand.
Company Response and Financial Impact
Shree Cement Limited has stated that it does not agree with the contentions made in the order. Regarding the immediate financial implications, the Company believes that the order has no major financial impact on its operations or financial stability. In response to the adverse ruling, the Company has confirmed its intention to file an appeal under Section 107 of the Karnataka GST Act. This appeal will be submitted on or before May 23, 2026, which is within the three-month window provided from the date of communication of the order.
Source: BSE
