Dalmia Cement (Bharat) Faces GST Notices Totalling ₹266 Crore

Dalmia Cement (Bharat) Limited (DCBL), a wholly owned subsidiary of Dalmia Bharat, has received two GST show-cause notices from the Sales Tax Officer in Lalgudi, Tiruchirapalli.

The notices, issued under Section 74 of the Central GST and Tamil Nadu GST Act, amount to a combined demand of ₹266.3 crore for the assessment years (AY) 2019–20 and 2022–23.

According to the company’s exchange filing, authorities issued the notices after adjudication proceedings found discrepancies in taxable turnover and input tax credit (ITC) claims.

Officials detected these differences during their assessment of the company’s GST filings for the two fiscal years.

For AY 2019–20, the authorities have raised a tax demand of ₹128.39 crore, along with a penalty of ₹19.25 crore.

For AY 2022–23, the notice seeks ₹59.32 crore in tax, accompanied by an equivalent penalty, taking the total for this assessment year to ₹118.64 crore.

DCBL confirmed that it received the orders on 28 November 2025 at 7:30 PM.

Company’s Response

In its regulatory submission, Dalmia Cement clarified that the notices do not pose any financial impact on the company.

While the firm did not disclose specific details about its legal or administrative strategy, it emphasised that the demands would not translate into a monetary liability.

The filing stated, “Accordingly, there will be no financial impact on DCBL.”

The company has not elaborated on whether it intends to challenge the notices or is pursuing resolution through statutory processes.

Founded in 1939, Dalmia Bharat is India’s fourth-largest cement manufacturer, with a total installed capacity of 49.5 million tonnes per annum.

Headquartered in New Delhi, the company operates 15 cement plants across 10 states, making it one of the country’s key players in the cement and construction materials sector.

Information available on its website highlights the firm’s significant national footprint and long-standing presence in the industry.

While the GST notices represent a substantial demand, Dalmia Cement’s assurance of no financial impact suggests confidence in its compliance position or in the resolution mechanisms available under the GST framework.

The company’s reaction indicates that it expects the matter to be resolved without affecting its operational or financial stability.

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