UltraTech Cement Hit With Rs 390-Crore GST Demand; Company Plans Legal Challenge

Mumbai, Dec 2025 : UltraTech Cement Limited has been served a tax demand order of nearly Rs 390 crore by the Joint Commissioner of Central Goods and Services Tax and Central Excise, Patna, prompting the company to prepare a legal response.

In addition to the alleged tax dues, the company has been directed to pay a matching penalty of around Rs 390 crore, along with interest of approximately Rs 28 lakh.

In a regulatory filing on Sunday, UltraTech Cement said the demand relates to issues involving alleged short payment of GST, irregular utilisation of input tax credit, and other compliance matters under GST norms.

“The Company has received an Order from the Joint Commissioner, Central Goods and Services Tax & Central Excise, Patna,” the cement manufacturer stated, confirming that the case spans financial years 2018–19 to 2022–23.

The tax amount, along with the penalty and interest imposed, totals more than Rs 780 crore. This figure is significant when compared with the company’s profit of Rs 1,232 crore in the September 2025 quarter, accounting for almost two-thirds of its earnings for the period.

India’s largest cement producer reported strong financials for the quarter ended September 2025, posting a 20.3 per cent rise in revenue to Rs 19,607 crore, supported by sustained demand and capacity expansion.

As per the order, the total tax liability upheld amounts to Rs 3,90,95,58,194, with interest on the tax dues to be paid separately. An additional interest demand of Rs 27,68,289 and a penalty of Rs 3,90,95,58,194 were also included in the final ruling.

However, UltraTech Cement said it is reviewing the decision and intends to challenge it through appropriate legal avenues.

The company clarified that the matter is not expected to affect its daily operations or financial stability.

“The Company is reviewing the Order, considering all legal options, and accordingly would be contesting the demand, and does not expect the said Order to have any operational/financial impact on the Company,” it noted.

UltraTech Cement is scheduled to announce its financial results for the ongoing third quarter on January 24, 2026, where further clarity may emerge regarding the tax case.

Meanwhile, UltraTech shares continue to trade steadily. On the most recent trading day, the stock closed at Rs 11,497, gaining Rs 36 or 0.31 per cent, reflecting limited market reaction to the development.