UltraTech Cement gets GST Demand and Penalty Order worth Rs. 2.28 Crore

UltraTech Cement announced that company received an order from the Assistant Commissioner, CGST and C. Ex Division 3, Bhavnagar, requesting a payment of Rs. 1.14 crore for Goods and Services Tax (GST), as well as interest and penalties equal to the demand payment. The demand stems from an alleged failure to pay differential GST on mined limestone royalty.

The company stated in a filing with the Bombay Stock Exchange (BSE) that the order has been issued, confirming the necessity to pay Rs. 1,14,87,546 as Goods and Services Tax (GST), together with interest and penalties of Rs. 1,14,87,546. This sum is connected to the differential GST estimated at 13% (18% less 5%) on the royalty paid from mined limestone.

The company stated that it would file a legal appeal to this order since it thinks that the difference duty and interest have already been paid, but the authority has not recognised it.

UltraTech Cement announced a strong increase in its consolidated net profit of 68.76 percent in the second quarter of the financial year 2023-24. The profit after tax for the second quarter of FY24 was Rs. 1,280.30 crore, up from Rs. 758.70 crore in the same quarter of the previous financial year.

Furthermore, the company’s total consolidated income for the second quarter of FY24 was Rs. 16,179.26 crores, up 15.25 percent from Rs. 14,038.95 crores in the same quarter last year.

UltraTech Cement’s net worth was Rs. 58,203.83 crore as of September 30, 2023. The debt-equity ratio of the company is 0.18, the total debts to total assets ratio is 11%, the current ratio is 1.05, the current liability ratio is 51%, the operating margin is 16%, and the net profit margin is 8%.