JSW Cement Receives Demand-Cum-Show Cause Notice Regarding GST Liability
JSW Cement Limited has received a Demand-cum-Show Cause Notice from the Additional Commissioner Central Tax (Audit), Patna. The notice, issued on May 15, 2026, pertains to alleged discrepancies and liabilities under the Central Goods and Services Tax (CGST) Act 2017.The notice was issued under Section 74 of the CGST Act 2017 and covers several areas across multiple financial years, including FY 2020-21, FY 2021-22, and FY 2022-23.
Details of Alleged Tax Discrepancies
The notice raises ten specific points regarding alleged tax shortfalls and non-compliance. These include:| Sr. No. | Particulars of Dispute |
|---|---|
| 1 | Credit Notes of GSTR9C (FY 2020-21), where the department alleges the company reported values (Table-5J) without paying requisite GST, treating them as taxable outward supplies. |
| 2 | Unreconciled tax liability between the books of accounts and GSTR-9 for FY 2020-21. |
| 3 | Deemed Supply (FY 2021-22), concerning the failure to substantiate 'deemed supplies' (Schedule I transactions) with invoices or proof of GST payment. |
| 4 | Trade Discount (Multiple Years), alleging that reported trade discounts are not permissible deductions and should be included in the taxable value. |
| 5 | Unreconciled turnover between the books of accounts and GST returns for FY 2022-23. |
| 6 | Excess Input Tax Credit (ITC) availed from GSTR-2A versus GSTR-3B covering the period FY 2020-21 to 2022-23. |
| 7 | Delay in filing or payment of GSTR 3B, resulting in Interest on Delay in Payment (FY 2020-21). |
| 8 | Difference in tax declared between GSTR-1 versus GSTR-3B, leading to short payment of GST. |
| 9 | ITC on Wrong Place of Supply, rendering such input tax credit ineligible under GST provisions. |
| 10 | Failure to discharge Reverse Charge Mechanism (RCM) Liability for the period FY 2020-21 to 2022-23. |
Proposed Financial Demand
The Show-Cause Notice proposes a demand of GST aggregating to approximately Rs. 7,55,84,148/-. This amount is comprised of:- IGST: Rs. 1,21,54,554/-
- CGST: Rs. 3,17,14,797/-
- SGST: Rs. 3,17,14,797/-
The notice also claims applicable interest and penalty, making the total quantum of the demand approximately Rs. 7,55,84,148/- plus accrued penalties.
The alleged violations pertain to provisions under Section 9, Section 16, Section 37, Section 39, and Section 47 of the CGST Act 2017, and related Rules.
JSW Cement Limited has confirmed that the company is currently in the process of filing a reply addressing the details contained within the notice.
JSWCEMENT Stock Price Movement
As of 3:22 PM, shares of JSW Cement Limited are slipping by 1.21% in live trading, currently trading at ₹121.32. The stock has seen 738,288 shares traded in volume today, contributing to the intraday decline.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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