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This Article is From Dec 24, 2024

UltraTech Cement Gets Rs 36-Crore Tax Demand From Ujjain GST Authority

UltraTech Cement Gets Rs 36-Crore Tax Demand From Ujjain GST Authority
UltraTech Cement Ltd. received a demand order of about Rs 36 crore from the Ujjain tax authority (Image source: UltraTech Cement website)

UltraTech Cement Ltd. received a demand order of about Rs 36 crore from the Ujjain tax authority.

The order was passed by the additional commissioner of CGST and central excise in Ujjain, demanding a goods and services tax of Rs 17 crore in taxes, and another Rs 17 crore in interest and penalty, according to an exchange filing.

In a second order, it demanded a tax of Rs 99 lakh and Rs 1,04 crore as interest and penalty.

In the first order, the authority has alleged that the company had not paid GST on the amount paid as royalty or upfront fees under reverse charge mechanism. However, UltraTech said that it "is reviewing the order and will decide on further course of action".

In another filing on Tuesday, the Aditya Birla group company intimated that it has received another order in original passed confirming partial demand proposed in SCN by the additional commissioner of CGST and central excise in Ujjain.

The second order alleged non-payment of GST on rural infrastructure and road development tax as the reason.

For this order too, the company has said that it "is reviewing the order and will decide on further course of action".

Recently, the Competition Commission of India had approved UltraTech Cement's proposed acquisition of the India Cements Ltd. for Rs 7,078 crore.

In July, the Aditya Birla Group flagship company had announced that it would acquire a 32.72% stake in India Cements from its promoters and their associates for Rs 3,954 crore to expand its footprint in the southern cement market, particularly in Tamil Nadu.

Shares of Ultratech Cement Ltd. closed 0.63% lower at Rs 11,395.55 apiece on the BSE, compared to a 0.09% decline in the benchmark Sensex.

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