JSW Cement Faces ₹13.9 Crore GST Demand for Alleged Excess ITC Claim
JSW Cement received a Show Cause Notice from CGST & CX Commissionerate demanding ₹13.91 crore for alleged excess ITC claim in FY 2020-21. The notice also proposes interest and penalty. The company asserts no material financial impact and is preparing a reply.
While the company states there is no material impact, a demand of ₹13.91 crore plus interest and penalty, even if disputed, represents a significant financial exposure and potential operational scrutiny, warranting a medium impact assessment.
The company has received a show cause notice proposing a significant demand for alleged excess Input Tax Credit, along with interest and penalty, which indicates a negative development.
JSW Cement Limited has disclosed a Show Cause Notice received from the Joint Commissioner, Haldia CGST & CX Commissionerate on August 25, 2026. The notice, issued under Section 74 of the CGST Act 2017, alleges that the company wrongly availed excess Input Tax Credit (ITC) amounting to ₹13,90,55,461 during FY 2020-21.
The allegations stem from discrepancies identified through DGARM analysis and reconciliation of GSTR-3B, GSTR-9, and GSTR-2A data. The department contends that the excess credit is unsupported by supplier-reported records and statutory documentation, violating provisions of the CGST Act. The company's defense that the difference arose due to import IGST being reported under the wrong column in GSTR-3B was reportedly rejected.
Consequently, the notice proposes the recovery of ₹13,90,55,461, along with applicable interest and penalty, under Section 74, citing suppression of facts and willful misstatement. The total proposed GST demand includes ₹11,21,33,691 for IGST, ₹1,34,60,888 for CGST, and ₹1,34,60,882 for SGST. Despite the demand, the company stated that there is no material impact on its operations and is in the process of filing a reply to the notice.
What to do with a filing like this
JSW Cement Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by JSW Cement Limited. Read the original for the full detail.