UltraTech Cement has received a Rs 782 crore GST demand from the CGST department, including tax, penalty and interest. The company said it will challenge the order legally and expects no operational or financial impact from the notice.
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PATNA: UltraTech Cement Ltd., India’s largest cement manufacturer, has received a substantial tax demand order from the Central Goods and Services Tax (CGST) and Central Excise department in Patna, according to a regulatory filing made on Saturday.
The order, issued by the Joint Commissioner, CGST and Central Excise, Patna, directs the company to pay ₹390 crore in alleged GST dues, along with an equal penalty of ₹390 crore and interest of ₹28 lakh, taking the total exposure to nearly ₹782 crore.
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GST Demand Details
The tax authority has raised the demand, citing:
- Alleged short payment of Goods and Services Tax (GST)
- Improper utilisation of input tax credit (ITC)
- Other compliance-related issues
These allegations pertain to the period between FY2018-19 and FY2022-23, UltraTech Cement said in its exchange filing.
The combined penalty and interest amount is significant, amounting to nearly two-thirds of UltraTech Cement’s consolidated profit of ₹1,232 crore reported for the second quarter ended September 2025.
During the same quarter:
- Revenue rose 20.3% year-on-year to ₹19,607 crore
- The company benefited from strong cement demand and improved capacity utilisation
Despite the magnitude of the demand, UltraTech Cement said it does not expect the order to have any immediate operational or financial impact.
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“The company is considering all legal options and will contest the demand through appropriate judicial and appellate forums. The company does not expect the said order to have any operational or financial impact,”
UltraTech Cement stated in its filing.
UltraTech Cement is scheduled to announce its Q3 FY26 earnings on January 24, 2026.
Shares of the company have remained nearly flat so far this year, reflecting cautious investor sentiment amid broader market volatility and ongoing regulatory scrutiny.
