ACC Limited, a leading cement manufacturer under the Adani Group, has received a tax demand of ₹160.5 crore from the Commercial Tax Office, Perur Circle, Coimbatore, Tamil Nadu. The order, issued under Section 73 of the CGST Act, 2017 and SGST Act, 2017, includes penalties and interest on various alleged tax liabilities.

In an official regulatory disclosure to the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), ACC Limited confirmed that it is taking appropriate legal steps to challenge the tax demand before the relevant appellate authorities.

Breakdown of the tax demand

According to the company’s filing, the Assistant Commissioner (ST) (FAC), Perur Circle, Coimbatore, levied penalties and interest on the following grounds:

• GST liability on miscellaneous expenses
• Reversal of Input Tax Credit (ITC) on sundry creditors
• Taxation on depreciation claims
• Other compliance-related matters

The total tax liability, including penalties, amounts to ₹160,52,32,72 (₹160.5 crore).

Financial impact on ACC Limited

Despite the size of the tax demand, ACC Limited has stated that it does not foresee any material impact on its financial, operational, or other business activities. The company remains confident in its legal position and plans to pursue an appeal through appropriate legal channels.

ACC Limited’s stock market performance is also unlikely to be significantly affected, as the company maintains a strong financial position and continues its operations without disruptions.

Legal and regulatory implications

The GST demand comes amid increased scrutiny of corporate tax compliance in India, as tax authorities focus on ensuring adherence to GST laws and ITC claim regulations. Several companies across industries have faced similar tax demands due to ITC reversals, disputed expense classifications, and depreciation-related tax adjustments.

ACC Limited, being a part of the Adani Group, is expected to handle the matter through appropriate legal and regulatory channels. The company’s decision to challenge the demand reflects its commitment to compliance and financial prudence.

What’s next for ACC Limited?

• Filing an appeal: ACC Limited will appeal against the tax demand before the appropriate authority, arguing its case for reversing or reducing the liability.
• Regulatory compliance: The company will continue to engage with tax authorities to resolve the matter within the legal framework.
• Investor confidence: Despite the tax notice, ACC’s financial stability and ongoing operations remain unaffected, ensuring investor confidence.

Conclusion

The ₹160 crore GST demand against ACC Limited is a significant regulatory challenge, but the company remains confident in its legal approach. With a well-established compliance framework, ACC expects to navigate the appeal process smoothly without any major financial disruptions. Investors and stakeholders will be watching closely as the case unfolds in the coming months.

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