JSW Cement Faces Rs 81.03 Crore GST Demand for Alleged Tax Short Payment, ITC Irregularities, and Tax Classification Issues:

JSW Cement Limited has informed the stock exchanges that it has received a Show Cause Notice (SCN) from the Office of the Additional Commissioner, Central Tax (Audit), Guntur, proposing a GST demand of Rs 81.03 crore for the financial years 2020-21 to 2022-23.

The notice, received on August 20, 2026, was issued under Section 74 of the CGST Act, 2017, along with relevant provisions of the APGST Act. The allegations include irregular reduction of taxable value through post-sale discounts, improper reduction of tax liability through credit notes, and short payment of GST due to incorrect classification and tax rates.

The GST authorities have also alleged that the company failed to provide proof of supply for authorised operations involving supplies to Special Economic Zone (SEZ) units. Other allegations relate to excess or incorrect availment of Input Tax Credit (ITC), including credits not reflected in GSTR-2A/2B, credits linked to non-filing suppliers, excess ISD credit and blocked or time-barred ITC.

The notice further alleges non-payment of GST under the reverse charge mechanism and non-payment of interest on delayed monthly returns and irregularly availed or utilised ITC.

The proposed GST demand comprises Rs 48.27 crore of IGST, Rs 16.38 crore of CGST, and Rs 16.38 crore of APGST. Applicable interest and an equivalent penalty have also been proposed.

JSW Cement said the financial impact would be limited to the demand, interest, and penalty proposed in the SCN and stated that there is no material impact on the company. The company is currently in the process of filing its reply to the notice.

The company has made the aforementioned disclosure vide an intimation dated August 21, 2026, addressed to the National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE), issued in pursuance of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Refer to the official intimation for complete information.