Shree Cement Receives ₹41.10 Crore GST Demand Order from Bihar Authorities

Shree Cement Ltd, a Rajasthan-based cement manufacturer, has been served a Goods and Services Tax (GST) demand order from the Deputy Commissioner, State Tax, Special Circle, Patna, Bihar. The order, amounting to ₹41.10 crore, includes tax, interest, and penalties. The company has stated that the demand does not significantly impact its financial position and plans to contest it through an appeal.

Breakdown of the GST Demand

The GST demand order, issued in Form GST DRC-07, cites valuation discrepancies and excess Input Tax Credit (ITC) availed as the primary reasons. The total amount of ₹41.10 crore comprises a tax demand of ₹23.55 crore, interest of ₹15.19 crore, and a penalty of ₹2.35 crore. The order was communicated to the company on 24 February 2025.

Company’s Response and Next Steps

Shree Cement has stated that it does not agree with the contentions raised in the order and intends to challenge the demand under Section 107 of the Bihar GST Act. The company plans to file an appeal before 23 May 2025, which is within the prescribed three-month period from the date of order communication. Despite the demand, the company asserts that there is no significant financial impact on its operations.

Shree Cement Share Performance

 As of February 25, 2025, at 1:15 PM, the shares of Shree Cements Ltd are trading at ₹28,073.30 per share, reflecting a decline of 0.77% from the previous day’s closing price. 

Conclusion

Shree Cement Ltd is preparing to challenge the ₹41.10 crore GST demand imposed by Bihar tax authorities, citing valuation issues and excess ITC claims. The company has clarified that the order does not materially affect its financial position and will pursue legal recourse within the stipulated timeframe.

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