Shree Cement Disputes ₹8.31 Crore GST Demand, Plans Appeal

Shree Cement has received a Goods and Services Tax (GST) demand order for ₹830.95 lakh, equivalent to ₹8.31 crore, from Jodhpur tax authorities. The order pertains to alleged non-payment of service tax.

The company firmly disputes the allegations, asserting it possesses a strong case on its merits. Shree Cement plans to file an appeal against the order before the Tribunal by July 15, 2026. The company has indicated that the demand order does not have a major financial impact.

Such tax demand notices, even when disputed, highlight the ongoing compliance and regulatory environment faced by major corporations. For shareholders, navigating these legal and tax disputes effectively is a key factor.

This Jodhpur notice follows a pattern of tax-related issues for Shree Cement. In February 2025, it received a ₹41.10 crore GST demand from Bihar authorities over valuation and Input Tax Credit (ITC) issues, which was also disputed and appealed. Earlier, in February 2026, Belagavi tax authorities issued a ₹15.60 crore GST demand for alleged wrong ITC availment, which the company contested. Adding to regulatory scrutiny, the Ministry of Corporate Affairs (MCA) initiated an investigation into Shree Cement in January 2026 under the Companies Act, 2013, following earlier significant allegations of tax evasion totaling ₹23,000 crore from Income Tax searches in June 2023.

Shree Cement is not alone in facing GST scrutiny; its peers have also encountered similar issues. UltraTech Cement, for instance, disclosed a GST order in February 2025 involving a ₹1.08 crore tax demand for FY20 ITC issues. Key competitors in the cement sector include UltraTech Cement Ltd., Ambuja Cements Ltd., ACC Ltd., and Dalmia Bharat Ltd.

As of FY25, Shree Cement reported revenues of ₹19,872 crore and net income of ₹1,123 crore. The company's total assets stood at ₹28,491 crore with total equity at ₹21,578 crore as of the same fiscal year.