Patna GST office issues ₹390 crore tax order against UltraTech Cement

UltraTech Cement Limited has been ordered to pay tax at around Rs 390 crore as per the demand order issued by the Joint Commissioner of Central Goods and Services Tax and Central Excise, Patna.

Penalty and interest also imposed

The company has also been notified to pay an equal amount as penalty and interest of about Rs 28 lakhs has been indicated.

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UltraTech Cement Ltd in its regulatory filing made it clear that the demand was due to alleged underpayment of Goods and Services Tax, wrongfully utilizing input tax credit and other issues in this connection.

In the company’s filing it stated, ” The Company has received an Order from the Joint Commissioner, Central Goods and Services Tax & Central Excise, Patna.”

Demand covers FY 2018-19 to FY 2022-23

The matter involves the period from the financial year 2018-19 to 2022-23.

The combined penalty and interest amount to about two-thirds of the company's profit of Rs 1,232 crore for the second quarter ended September 2025, which was reported that year.

The country's top cement producer also posted good results that quarter, with a sales hike of 20.3 per cent YoY to Rs 19,607 crore.

“The tax liability of Rs 3,90,95,58,194, along with applicable interest, plus additional interest of Rs 27,68,289 and the penalty of Rs 3,90,95,58,194, have been ordered in the original ruling,” stated the company.

UltraTech plans legal challenge, shares steady

UltraTech stated that it does not believe the tax demand will cause any adverse consequence to its business or financial status.

The firm's earnings announcement for the current third quarter is expected on January 24, 2026.

“The Company is looking into the Order, is weighing all possible legal actions, and will thus be disputing the demand, and does not anticipate the said Order to have any impact on the Company's operations/finances,” it further stated.

In the meantime, UltraTech Cement shares have not shown much movement over the current year to date.

On the last trading day, the stock was at Rs 11,497, an increase of Rs 36 or 0.31 per cent.