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UltraTech Cement's Rs 780 Crore Tax Battle: What a Rs 390 Crore GST Demand Reveals

UltraTech Cement has been hit with a massive tax demand notice. The order from Patna GST authorities claims the company owes about Rs 390 crore in dues, plus an equal penalty. This case covers several financial years and alleges issues like short payment of GST. However, UltraTech is planning to fight this in court and says its business won't be affected.

Key Points: UltraTech Cement Faces Rs 390 Crore GST Demand and Penalty

  • Rs 390 crore GST demand relates to alleged short payment and improper input tax credit from 2018-2023
  • Company faces an additional penalty of Rs 390 crore and interest of around Rs 28 lakh
  • Total penalty and interest equal nearly two-thirds of Q2 FY25 net profit
  • UltraTech asserts it will legally contest the order and expects no operational impact
2 min read

UltraTech Cement faces Rs 390 crore GST demand

UltraTech Cement contests a Rs 390 crore GST demand plus equal penalty from Patna authorities, covering FY 2018-23, but expects no financial impact.

"The Company is reviewing the Order, considering all legal options, and accordingly would be contesting the demand - UltraTech Cement Regulatory Filing"

Mumbai, Dec 21

UltraTech Cement Limited has received a tax demand order from the Joint Commissioner of Central Goods and Services Tax and Central Excise, Patna, asking the company to pay alleged dues of about Rs 390 crore.

Along with this, the company has also been asked to pay a penalty of a similar amount and interest of around Rs 28 lakh.

In a regulatory filing, UltraTech Cement Ltd said the demand relates to alleged short payment of Goods and Services Tax, improper use of input tax credit and other related issues.

“The Company has received an Order from the Joint Commissioner, Central Goods and Services Tax & Central Excise, Patna,” it said in its filing.

The case covers the period from the financial year 2018-19 to 2022-23.

The total penalty and interest together account for nearly two-thirds of the company’s profit of Rs 1,232 crore reported for the second quarter ended September 2025.

During the same quarter, the country’s largest cement maker reported a strong performance, with revenue rising 20.3 per cent year-on-year to Rs 19,607 crore.

“Order in Original passed upholding tax liability of Rs 3,90,95,58,194 plus applicable interest on tax demand; additional interest Rs 27,68,289 and penalty of Rs 3,90,95,58,194,” the company added.

However, the company said it is considering all legal options and plans to challenge the order.

UltraTech added that it does not expect the tax demand to have any impact on its operations or financial position.

The company is scheduled to announce its earnings for the ongoing third quarter on January 24, 2026.

“The Company is reviewing the Order, considering all legal options, and accordingly would be contesting the demand, and does not expect the said Order to have any operational/financial impact on the Company,” it added.

Meanwhile, UltraTech Cement shares have remained largely flat so far this year. On the latest trading day, the stock closed at Rs 11,497, up Rs 36 or 0.31 per cent.

- IANS

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Reader Comments

P
Priya S
If a giant like UltraTech is facing such a massive GST demand, imagine the scrutiny on smaller businesses. The GST system is so complex, even experts get confused. The government should simplify it instead of just sending demand notices.
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Arjun K
They reported a profit of ~1200 Cr last quarter. A penalty of ~390 Cr is a third of that! That's a serious hit, no matter what their filing says. "No operational/financial impact" seems like standard corporate talk to calm investors.
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Sarah B
Interesting that the demand is from Patna. Makes me wonder if there's a specific supply chain or dealer network issue in Bihar that triggered this audit. Regional tax offices can be very aggressive in their interpretations.
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Vikram M
Good to see the tax department is active. Everyone must pay their fair share, big or small. But the penalty being equal to the tax demand seems excessive. It should be proportional to encourage compliance, not just punish.
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Karthik V
This is why I'm wary of investing in Indian manufacturing stocks. The regulatory overhang is always there. One fine day you get a massive tax notice for transactions from 5-6 years ago. Creates too much uncertainty.

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