Dalmia Cement receives GST show-cause notices worth Rs 266 crore

Mumbai, Nov 30 Dalmia Cement (Bharat) Limited (DCBL), a subsidiary of Dalmia Bharat, has received two show-cause notices from the Sales Tax Office in Tamil Nadu amounting to a total of Rs 266.3 crore.

The notices were issued under Section 74 of the Central GST and Tamil Nadu GST Act for the assessment years 2019–20 and 2022–23.

According to the company’s regulatory filing, the Sales Tax Officer in Lalgudi, Tiruchirapalli, has raised demands based on differences found in taxable turnover and input tax credit (ITC) claims during the two assessment years.

“We wish to inform that in an adjudication proceedings against Dalmia Cement (Bharat) Limited (“DCBL”), wholly owned subsidiary of the Company, related to two show cause notices issued under section 74 of the Central GST/Tamil Nadu GST Act 2017 for AY 2019-20 and AY 2022-23,” the firm said in its exchange filing.

For 2019–20, authorities have demanded Rs 128.39 crore in tax along with a penalty of Rs 19.25 crore.

For 2022–23, the notice seeks Rs 59.32 crore in tax and an equal amount as penalty. The orders were received by the company on November 28, 2025.

“The Orders were received on November 28, 2025 at 07:30 P.M,” the firm stated.

Dalmia Cement has clarified that these notices will not have any financial impact on the company. It did not elaborate on how the matter will be addressed but indicated that it expects no monetary burden as a result of the notices.

“Accordingly, there will be no financial impact on DCBL,” the firm added in its filing.

Dalmia Bharat, established in 1939, is India’s fourth-largest cement producer with an installed capacity of 49.5 million tonnes per annum.

According to information available on the website, the company is headquartered in New Delhi and operates 15 cement plants across 10 states.

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