Ambuja Cements has received a demand order from the GST authorities amounting to ₹19,29,92,594, which includes interest and penalties. The order, issued on April 10, 2026, pertains to alleged tax discrepancies spanning the financial years 2019-20 to 2022-23. The company has confirmed it is currently evaluating the order and intends to initiate formal appeal proceedings against the demand.
Details of the Tax Order
The Superintendent (ADJ.) CGST and CX Nagpur-I has issued a formal demand order against Ambuja Cements. The total liability cited in the order is ₹19,29,92,594. This figure represents the aggregate of tax, applicable interest, and penalties imposed by the authority.
Basis of the Demand
According to the order, the tax authorities have alleged discrepancies regarding the company’s tax filings. Specifically, the department has raised concerns over the excess availment of Input Tax Credit (ITC) resulting from GSTR 2B mismatches. Additionally, the order cites issues related to the delayed payment of GST under the reverse charge mechanism specifically concerning mining royalties for the period covering FY 2019-20 through FY 2022-23.
Company Response and Outlook
Ambuja Cements is in the process of taking the necessary legal steps to contest the decision. The company management is actively preparing to file an appeal with the relevant competent authority to challenge the demand. Despite this development, the company has stated that it does not foresee any material impact on its overall financial position, ongoing operations, or general business activities.
Source: BSE
