On August 31, 2024, UltraTech Cement Limited disclosed to the stock exchanges that it has received an order from the Joint Commissioner of State Tax, Chhattisgarh, concerning a tax demand related to the reversal of Input Tax Credit (ITC). The company has been asked to pay Rs. 5,41,350 in taxes, along with Rs. 4,00,182 in interest and Rs. 54,134 as a penalty, bringing the total demand to Rs. 9,95,666.

1. Details of the Order: The Joint Commissioner, State Tax, Chhattisgarh, issued the order on August 30, 2024, citing issues related to documentary evidence for ITC reversal. According to the order, the evidence provided by UltraTech Cement was not accepted, leading to the demand for additional tax, interest, and penalty.

2. Company’s Response: UltraTech Cement has stated that it has a strong case on merits and intends to contest the order. The company is confident that the reversal of the ITC was conducted correctly and that the evidence provided should be considered valid.

3. Financial Impact: The company has clarified that the tax amount has already been reversed, which means there will be no impact on its financials from this order. The contesting of the order is primarily to address the additional demands for interest and penalty.

4. Compliance and Corporate Governance: UltraTech Cement remains committed to ensuring compliance with all tax regulations and maintaining high standards of corporate governance. The company is taking appropriate legal steps to resolve this matter and protect its interests.

5. Conclusion: This development underscores the importance of accurate documentation and compliance in ITC reversals under GST regulations. As UltraTech Cement navigates this situation, it will focus on resolving the issue through legal channels, minimizing any potential financial impact.

Also Read : Bayer CropScience Receives Multiple GST Penalty Orders for FY 2019-20

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