Birla Cable Limited Discloses ₹1,189.80 Lakh GST Demand; ₹2,007.79 Lakh Dropped by Authorities

Jabalpur, India | February 1, 2025 – Birla Cable Limited has received an adjudication order from the Joint Commissioner, CGST & Central Excise, Jabalpur, Madhya Pradesh, under Section 74 of the Central Goods and Services Tax Act, 2017. While the order confirms a GST demand of ₹594.90 lakh (CGST: ₹297.45 lakh + SGST: ₹297.45 lakh) along with an equal penalty, bringing the total financial exposure to ₹1,189.80 lakh, the authorities have dropped a significant portion of the original demand—₹2,007.79 lakh.

Key Details of the Order​

• Issuing Authority: Joint Commissioner, CGST & Central Excise, Jabalpur, Madhya Pradesh.
• Date of Order Receipt: January 31, 2025 (7:40 PM IST).
• Alleged Violation: Non-payment of GST on Corporate Guarantee provided by the company for the financial years 2017-18 to 2022-23.
• Total Initial GST Demand: ₹2,602.69 lakh.
• Amount Dropped by Authorities: ₹2,007.79 lakh (77% of the original demand).
• Final GST Demand & Penalty: ₹1,189.80 lakh (₹594.90 lakh GST + ₹594.90 lakh penalty).

Company’s Response & Financial Impact​

Birla Cable Limited disputes the remaining demand, maintaining that it is unsustainable and unlikely to have a material impact on its financials, operations, or business activities. The company has announced that it will appeal against the order.

Next Steps​

Birla Cable Limited remains committed to pursuing all legal remedies to contest the demand and will provide further updates as the situation evolves.