Key Quantitative Figures
The Show Cause Notice proposes a total demand of ₹55,97,98,020 (approximately ₹56 crore). This amount comprises:
Tax Demand: ₹32,85,84,279
- IGST: ₹8,35,01,705
- CGST: ₹12,21,47,759
- SGST: ₹12,21,47,759
- CESS: ₹9,87,056
Interest Demand: ₹19,77,35,312
- IGST Interest: ₹5,03,20,642
- CGST Interest: ₹7,36,09,920
- SGST Interest: ₹7,36,09,920
- CESS Interest: ₹5,94,830
Penalty Demand: ₹3,34,78,429
- IGST Penalty: ₹83,50,171
- CGST Penalty: ₹1,22,14,776
- SGST Penalty: ₹1,22,14,776
- CESS Penalty: ₹98,706
Dates of Action
The Show Cause Notice was received on August 29, 2026, from the Joint Commissioner of State Tax, CT & GST Circle, Jajpur. The disclosure was made to the stock exchanges on the same date.
Parties Involved
The notice was issued by the Joint Commissioner of State Tax, CT & GST Circle, Jajpur. The matter pertains to JSW Cement Limited's operations.
Purpose and Context
The notice follows a GST audit for Financial Year 2022-23 and alleges:
- Short payment of tax
- Irregular availment of input tax credit
The allegations are based on return reconciliations, e-way bill validations, reverse charge compliance, turnover differences, and documentary verification. The matter involves interpretation, reconciliation and documentary substantiation issues under Sections 16(1), 16(2), 17 and 41 of the CGST Act, 2017 read with Rules 36 and 42 of the CGST Rules, 2017.
Company Response and Status
The company is in the process of filing a reply to the Show Cause Notice. JSW Cement states that it has appropriate explanations and supporting records to contest the allegations in appellate proceedings.
Financial Impact Assessment
The company explicitly states that "there is no material impact on the Company" from this Show Cause Notice, despite the substantial financial demand of ₹55.98 crore.