JK Lakshmi Cement has received a favorable order from the GST Department concerning a dispute over Input Tax Credit (ITC) for the period April 2019 to March 2023. While an initial demand of ₹263.84 lakh was raised, the authorities dropped the vast majority of the claim. The company now faces an upheld demand of ₹11.52 lakh and intends to challenge this remaining amount through the formal appeals process.
Resolution of Tax Dispute
Following a Show Cause Notice issued in September 2025, the GST Department has concluded its adjudication regarding an alleged wrongful availment of Input Tax Credit (ITC). The original claim against the company stood at ₹263.84 lakh for the period covering the financial years 2019-20 through 2022-23.
Outcome of Adjudication
In an order dated March 24, 2026, tax authorities decided to drop a significant portion of the disputed amount, specifically ₹252.32 lakh. However, a liability of ₹11.52 lakh, along with an equivalent penalty, has been upheld. This development significantly reduces the financial exposure originally associated with the audit.
Company’s Next Steps
The company maintains its position regarding the remaining tax liability and has confirmed it is currently in the process of filing an appeal to contest the ₹11.52 lakh disallowance. Management does not anticipate any material adverse financial impact on the company’s operations as a result of this final order.
Source: BSE
