Tax / Regulatory Notice
JSW Cement Receives GST Demand-cum-Show Cause Notice from Central Tax Department
NSE
JSWCEMENT
BSE
544480
JSW Cement Limited disclosed receipt of a Demand-cum-Show Cause Notice from the Office of the Additional Commissioner Central Tax (Audit), Patna, under Section 74 of the CGST Act, 2017. The notice involves alleged GST discrepancies across FY2020-21 to FY2022-23 with a proposed tax demand of approximately ₹7.56 crore along with applicable interest and penalty.
PRICE-SENSITIVE TRIGGER
Event: Receipt of GST Demand-cum-Show Cause Notice
Type: Tax / Regulatory Notice
Impact: Negative
Immediate Effect: The company faces a proposed GST demand of around ₹7.56 crore plus interest and penalty arising from alleged discrepancies in GST filings and tax compliance across multiple financial years.
Key Metrics:
- Proposed GST Demand: ₹7,55,84,148
- IGST Component: ₹1,21,54,554
- CGST Component: ₹3,17,14,797
- SGST Component: ₹3,17,14,797
- Applicable Additional Liability: Interest and penalty extra
- Period Under Review: FY2020-21 to FY2022-23
Highlight Metric:
Total GST Demand
- Approx. ₹7.56 crore excluding interest and penalty.
What Happened ?
JSW Cement Limited informed stock exchanges that it received a Demand-cum-Show Cause Notice from the Office of the Additional Commissioner Central Tax (Audit), Patna, under Section 74 of the CGST Act, 2017.
The notice relates to alleged GST compliance discrepancies across multiple years, including credit notes reporting, unreconciled liabilities and turnover, deemed supplies, excess ITC claims, delayed GST payments, and reverse charge mechanism liabilities. The tax department has proposed a GST demand aggregating to approximately ₹7.56 crore along with applicable interest and penalties. The company stated it is in the process of filing its reply.
Key Details
GST Demand-cum-Show Cause Notice:
- The notice was received through email on May 15, 2026 at 12:33:09 IST.
- The matter pertains to a show-cause-cum-demand notice issued by the Office of the Additional Commissioner Central Tax (Audit), Patna.
- Proceedings were initiated under Section 74 of the CGST Act, 2017.
- The notice relates to GST compliance issues spanning FY2020-21 to FY2022-23.
- Authorities alleged improper reporting of GSTR-9C credit notes where GST was allegedly unpaid.
- The department highlighted unreconciled tax liabilities between books of accounts and GSTR-9 filings.
- Allegations include improper reporting of deemed supplies under Schedule I transactions.
- Trade discounts reported across multiple years were alleged to be impermissible deductions under GST provisions.
- Authorities pointed to unreconciled turnover differences between books and GST returns.
- Excess ITC availed in GSTR-2A versus GSTR-3B was also questioned.
- The notice includes allegations of delayed GST payments resulting in interest liabilities.
- The department also alleged incorrect place-of-supply ITC claims.
- Failure to discharge Reverse Charge Mechanism (RCM) liability was cited for FY2020-21 to FY2022-23.
- JSW Cement stated it is currently preparing and filing its response to the notice.
Note:
- The matter is currently at the show-cause stage and final liability, if any, will depend on adjudication and the company’s response before tax authorities.
Risk Analysis
Key Risks:
- Potential tax outflow exceeding ₹7.56 crore.
- Additional exposure toward interest and penalties.
- Increased regulatory and tax compliance scrutiny.
- Possible impact on profitability if liabilities crystallize.
- Litigation or prolonged adjudication process may increase compliance costs.
Worst Case Scenario:
- If the tax authorities uphold all allegations, JSW Cement may be required to pay the full GST demand along with substantial interest, penalties, and related compliance costs.
Risk Level: Medium
Company Commentary
- The company disclosed receipt of the notice under Regulation 30 of SEBI LODR Regulations.
- JSW Cement clarified that the matter pertains to alleged GST compliance discrepancies identified during audit proceedings.
- Management confirmed that the company is in the process of filing an appropriate reply to the notice.
- The disclosure was also uploaded on the company’s official website.
- The company has not accepted the allegations at this stage.
Official Exchange Filing: JSW Cement Ltd