ACC Limited has announced it will contest a tax order issued by the Joint Commissioner, Taxpayer Services Circle, Kerala. The order, received on April 10, 2026, involves a total tax, interest, and penalty demand of ₹59.81 crore. The company maintains that this order will not have a material impact on its ongoing financial or operational activities and intends to appeal the decision through the appropriate legal channels.
Details of the Tax Order
On April 10, 2026, ACC Limited received an official order from the Joint Commissioner Taxpayer Services Circle in Thalassery, Kannur, Kerala. The order pertains to the CGST/KSGST Act, 2017 and levies a total demand of ₹59,80,58,854, a figure that encompasses tax, applicable interest, and penalties.
Basis of the Allegations
The tax authorities have cited several points of contention leading to the demand. These include excess availment of Input Tax Credit (ITC) regarding discrepancies between GSTR 3B and GSTR 2A filings, as well as irregular deductions of post-supply discounts. Furthermore, the authorities have challenged the company’s claim of blocked ITC under Section 17(5) and the non-reversal of tax credits on goods lost where insurance compensation was previously collected.
Financial and Operational Outlook
ACC Limited has formally stated its intention to appeal the order to the appropriate authorities within the mandated timeline. The management has confirmed that they do not foresee any material adverse impact on the company’s financial health, operations, or other corporate activities resulting from this specific demand. The company is currently taking all necessary legal steps to address the order and defend its position.
Source: BSE
