Details of Show Cause Notice

Issuing Authority: Office of the Additional Commissioner, Central Tax (Audit), Guntur

Date of Notice: 20th August, 2026

Legal Basis: Issued under Section 74 of CGST Act 2017 read with corresponding provisions of APGST Act 2017

Period Covered: Financial Years 2020-21 to 2022-23

Specific Allegations

The Show Cause Notice contains the following allegations against the company:

1. Irregular reduction of post-sale discount amount from taxable value without fulfilling conditions prescribed under Section 15 of CGST Act, 2017, and reduction of tax liability through credit notes in contravention of Section 34 of CGST Act, 2017.

2. Short payment of GST on account of incorrect classification and wrong adoption of tax rate.

3. Failure to furnish proof of supply for authorized operations in respect of supplies made to SEZ units.

4. Wrong/Excess availment of Input Tax Credit (ITC) due to:

  • Invoices not reflecting in GSTR-2A/2B
  • Non-filing of GSTR-3B by suppliers
  • Excess distribution of credit by Input-Service Distributor (ISD)
  • Input Tax Credit under CGST and APGST instead of IGST Credit or vice versa
  • ITC Blocked under Section 17(5) of CGST Act, 2017
  • ITC availed beyond the allowed time limit under Section 16 of CGST Act, 2017
  • Bills of entry pertaining to different GSTIN

5. Non-payment of tax under reverse charge on inward supplies liable to reverse charge mechanism as reflected in GSTR-2A.

6. Non-payment of interest on net cash liability for delay in filing monthly return, and irregularly availed and utilized Input Tax Credit.

Financial Implications

Total GST Demand: ₹81,03,42,387/- (Eighty-one crore three lakh forty-two thousand three hundred eighty-seven rupees)

Breakdown of Demand:

  • IGST: ₹48,26,82,179/-
  • CGST: ₹16,38,30,104/-
  • APGST: ₹16,38,30,104/-

Additional Liabilities: Applicable interest and equivalent penalty

Company Assessment: The company states that while the financial impact of the show cause notice is to the extent of the demand, penalty, and interest proposed, there is no material impact on the company.

Current Status and Actions

The company is in the process of filing a reply to the Show Cause Notice. The disclosure has been made to the stock exchanges pursuant to SEBI Listing Regulations and has been uploaded on the company's website at https://www.jswcement.in/.