Mumbai, February 1, 2025 – Shree Cement Limited (NSE: SHREECEM, BSE: 500387) has disclosed that it has received a GST demand order from the Assistant Commissioner, GST Division - D, Pali, Rajasthan. The demand order, issued in Form GST DRC-07, confirms a GST liability of ₹63,01,494, along with an equal penalty of ₹63,01,494, bringing the total amount to ₹1.26 crore.
Key Highlights of the GST Demand Order:
| Particulars | Details |
|---|---|
| Authority Issuing the Order | Assistant Commissioner, GST Division-D, Pali, Rajasthan |
| Nature of Demand | Wrong availment of Input Tax Credit (ITC) on cargo handling, clearing & forwarding, and warehousing services |
| Order Date | January 31, 2025 |
| Penalty Amount | ₹63,01,494 |
| Total Financial Impact | ₹1.26 crore |
| Company's Response | Plans to file an appeal under Section 107 of the CGST Act, 2017, before April 30, 2025 (within three months of receiving the order). |
Financial and Operational Impact
Shree Cement has stated that the order will not have a major financial impact on the company. The management has contested the demand and is set to appeal against the decision.Investor Outlook
While tax-related disputes can cause short-term volatility, Shree Cement's decision to challenge the demand could provide clarity on its financial position. Investors will likely monitor updates on the appeal process and any potential liabilities arising from this case.Stay tuned for further updates as Shree Cement proceeds with its appeal against the GST demand.