Dalmia Cement Faces ₹2.97 Cr GST Tax Bill, Plans Appeal

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AuthorKavya Nair|Published at:
Dalmia Cement Faces ₹2.97 Cr GST Tax Bill, Plans Appeal
Overview

Dalmia Cement (Bharat) Limited, a subsidiary of Dalmia Bharat Limited, faces ₹2.97 crore in GST tax and penalty demands for FY 2019-20. The demands arise from disallowed Input Tax Credit (ITC). The company plans to appeal, stating it expects no major financial impact beyond the disputed sum.

Dalmia Cement (Bharat) Limited, a subsidiary of Dalmia Bharat Limited, has received two Goods and Services Tax (GST) orders for the financial year 2019-20. The orders demand a total of ₹2.97 crore, including ₹1.49 crore in taxes and ₹1.49 crore in penalties. These demands arise from the disallowance of Input Tax Credit (ITC).

The company received these orders on March 26, 2026. One demand from Varanasi requires ₹21.75 lakh in tax and ₹21.75 lakh in penalties. A second order from Bokaro demands ₹1.27 crore in tax and an equal amount in penalties.

Dalmia Cement (Bharat) Limited believes it has strong grounds to contest these tax demands and plans to file appeals with the relevant Appellate Authorities. The company stated that its financial exposure is limited to the total demanded sum, including tax, interest, and penalties, should the appeals be unsuccessful.

These disputes highlight ongoing challenges with Input Tax Credit claims, a common issue within the competitive cement industry. While the ₹2.97 crore amount is not considered material for Dalmia Bharat's scale, these tax matters are closely watched. For instance, UltraTech Cement recently faced similar GST demands totaling ₹46 crore in Maharashtra and ₹28.97 crore from its acquired Kesoram Industries business, both related to alleged ITC irregularities. UltraTech also intends to contest these demands.

This is not the first GST-related issue for Dalmia Cement or its parent. In November 2025, earlier GST proceedings against a subsidiary that imposed demands over ₹266 crore were dropped by tax authorities, resulting in no financial impact. Dalmia Bharat Limited itself faced a penalty of ₹9.20 crore in February 2025 for allegedly availing ineligible ITC for the financial years 2017-20, an order it intended to appeal. A smaller service tax demand of ₹21.28 lakh concerning industrial water usage licenses was also raised against DCBL in December 2025.

Dalmia Bharat Limited reported consolidated revenue of ₹14,200 crore for the fiscal year 2025. The company's reported compound annual growth rate (CAGR) over the last year was -5%.

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