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.