1 week ago
JSW Cement Faces ₹81-Crore GST Demand, Plans Contest
JSW Cement has received a notice from tax authorities about possible GST mistakes.
The authorities are proposing that the company pay ₹81.03 crore in tax.
They also want interest and an equal penalty.
The questions cover discounts, tax rates, sales to special economic zones, and input tax credits.
Input tax credit is a reduction businesses can claim for eligible taxes they have already paid.
Officials also questioned some invoices and delayed or incorrect tax filings.
JSW Cement does not agree with the claims and is preparing a response.
The company said the matter is not expected to have a material impact on it.
JSW Cement received a show-cause notice proposing an ₹81.03-crore GST demand for alleged violations during FY21-FY23.
The notice was issued by the Central Tax Audit office in Guntur on August 20 and disclosed by the company on August 21.
Authorities questioned post-sale discount adjustments, tax classifications, rates, SEZ supply documentation, and input tax credit claims.
The proposed demand includes ₹48.27 crore in IGST and ₹16.38 crore each in CGST and APGST, plus interest and an equal penalty.
JSW Cement said it is preparing a reply and does not expect the matter to have a material impact.
- Who
- JSW Cement and the Office of the Additional Commissioner, Central Tax (Audit), Guntur.
- What
- A show-cause notice proposes an ₹81.03-crore GST demand, along with interest and an equivalent penalty, over alleged tax violations.
- Where
- The notice was issued by the Central Tax Audit office in Guntur and concerns provisions of the Andhra Pradesh GST Act.
- When
- The notice was issued on August 20 and disclosed by JSW Cement on August 21; the allegations cover FY21-FY23.
- Why
- Authorities allege irregular discount adjustments, incorrect tax classification or rates, inadequate SEZ documentation, and various input tax credit and filing issues.
Tax Authorities’ Position
JSW Cement’s Position
Tax liability
Tax Authorities’ Position
Authorities allege that JSW Cement violated GST requirements and have proposed a tax demand of ₹81.03 crore, plus interest and an equal penalty.
JSW Cement’s Position
JSW Cement is preparing a reply to contest the allegations and said the matter would not have a material impact.
Discounts and tax rates
Tax Authorities’ Position
Authorities questioned reductions in taxable value through post-sale discounts and alleged incorrect classification or use of a wrong tax rate.
JSW Cement’s Position
The company has not accepted the claims and plans to respond to the notice.
Input tax credit
Tax Authorities’ Position
Authorities cited invoices missing from GSTR-2A or GSTR-2B, supplier filing issues, excess distribution by an Input Service Distributor, blocked or late claims, and mismatched tax credits.
JSW Cement’s Position
JSW Cement is reviewing and contesting the proposed demand, including the issues involving input tax credit.
Key facts
- Proposed GST demand
- ₹81.03 crore
- Tax period
- FY21-FY23
- IGST component
- ₹48.27 crore
- CGST component
- ₹16.38 crore
- APGST component
- ₹16.38 crore
- Additional amounts
- Interest and an equal penalty have been proposed.
- Company response
- JSW Cement is preparing a reply to contest the matter and said it expects no material impact.
Sources
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