UltraTech Cement,India’s largest cement producer with an annual ⁢capacity approaching 200​ million tonnes,has received a Goods and Services Tax (GST) demand notice from the Joint​ Commissioner,Central Goods and Services ⁣Tax & Central⁣ Excise,Patna.The notice, dated December 15, 2023, calls for a‍ total‍ payment of ₹782.2 crore (approximately ⁢$93.7 million USD as of‌ December 20, 2023).

Details of⁤ the demand

The demand‍ encompasses tax liabilities totaling ₹3,90,95,58,194, applicable interest on the tax‍ demand, additional interest of ​₹27,68,289, ​and ‌a‌ penalty ⁤equivalent‌ to the tax liability​ – ₹3,90,95,58,194. The company states the order relates⁤ to alleged discrepancies ⁤in ⁤GST payments and improper utilization of⁣ input tax credits spanning ⁢the financial ​years‌ 2018-19 through 2022-23.

Company Response and legal Strategy

UltraTech ⁤Cement,a flagship company ⁢of the Aditya Birla‌ Group,has‍ indicated its‌ intention to challenge the order.⁢ In a regulatory filing, ⁣the ‌company confirmed it​ is reviewing ​the assessment order and considering all available legal options to contest the demand. The company also expressed ‍concern that the order was issued “without due⁤ consideration of the Company’s ⁢submissions.”

Investors should monitor developments as the dispute unfolds, as a critically important adverse ruling could impact UltraTech Cement’s financial performance. The‍ company’s ability ‍to ‌successfully​ contest the demand will be a key factor‌ in⁢ mitigating potential financial repercussions.