JSW Cement Faces ₹7.55 Crore GST Demand Notice from Patna Tax Office
JSW Cement Limited received a Demand-cum-Show Cause Notice from the Additional Commissioner, Central Tax (Audit), Patna. The notice alleges discrepancies related to credit notes, unreconciled tax liabilities, deemed supplies, trade discounts, excess ITC availed, and RCM liability. The proposed GST demand, including interest and penalties, is approximately ₹7.56 crore.
A tax demand of ₹7.56 crore, while substantial, is unlikely to have a severe impact on the overall financial health of a large company like JSW Cement. However, it does represent a material contingent liability.
The company has received a show-cause notice for a significant tax demand, indicating potential financial liabilities and legal challenges.
JSW Cement Limited has disclosed a significant development concerning a Demand-cum-Show Cause Notice issued by the Additional Commissioner, Central Tax (Audit), Patna. The notice, issued under Section 74 of the CGST Act, 2017, pertains to alleged discrepancies for various fiscal years.
Key issues raised by the department include the reporting of credit notes in GSTR-9C for FY 2020-21, which the department contends were not permissible under GST and should have been treated as taxable outward supplies. Additionally, the notice addresses unreconciled tax liability between the company's books of accounts and GSTR-9 for FY 2020-21, and alleged 'deemed supplies' (Schedule I transactions) for FY 2021-22 that were not substantiated with invoices or GST payment.
Further allegations involve trade discounts reported in GSTR-9C being considered impermissible deductions, unreconciled turnover between books and GST returns for FY 2022-23, excess Input Tax Credit (ITC) availed based on GSTR-2A vs GSTR-3B for FY 2020-21 to 2022-23, and delays in filing/payment of GSTR-3B resulting in interest for FY 2020-21.
The notice also points to differences in tax declared between GSTR-1 and GSTR-3B leading to short payment of GST, ineligible ITC due to incorrect Place of Supply, and failure to discharge RCM Liability for FY 2020-21 to 2022-23.
The total proposed demand amounts to approximately ₹7,55,84,148, comprising ₹1,21,54,554 of IGST, ₹3,17,14,797 of CGST, and ₹3,17,14,797 of SGST, along with applicable interest and penalties. JSW Cement is in the process of filing its reply to this notice.
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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.