Mumbai, Sep 24 (IANS) JSW Cement Limited, the cement arm of the Sajjan Jindal-led JSW Group, on Thursday said that it has received a show-cause notice from the Central GST authorities proposing a tax demand of Rs 229.85 crore over an alleged short payment of Goods and Services Tax (GST) arising from incorrect classification of certain transactions.

According to a regulatory filing, the notice was issued by the Additional Commissioner of Central Tax, Belagavi Audit Commissionerate, and was received by the company on September 24, 2026.

The tax department has proposed a GST demand of Rs 229.85 crore under Section 73 of the Central Goods and Services Tax (CGST) Act, 2017, for the period spanning April 2022 to March 2024. The proposed liability includes Integrated GST (IGST) of Rs 121.76 crore, Central GST (CGST) of Rs 54.05 crore and State GST (SGST) of Rs 54.05 crore.

"JSW Cement Limited has received Show Cause Notice from the Additional Commissioner, Central Tax, Belagavi Audit Commissionerate on 24th September, 2026 in relation to alleged short payment of GST on account of incorrect classification," it said.

In addition to the tax demand, the authorities have sought applicable interest and proposed a penalty equivalent to 10 per cent of the tax amount.

The notice alleges contraventions of Sections 9, 37 and 39 of the CGST Act, while also invoking interest provisions under Section 50 and penalty provisions under Section 73 of the law.

JSW Cement said the financial implication of the notice would be limited to the proposed tax demand, interest and penalty. However, the company maintained that the development does not have any material impact on its operations.

The company added that it is in the process of preparing and filing its response to the show-cause notice with the tax authorities.

The latest development comes as tax authorities continue to scrutinise GST classifications and compliance practices across industries. The outcome of the proceedings will depend on the company's response and subsequent adjudication by the authorities.

"The financial impact of the show cause notice is to the extent of the Demand, Penalty and Interest proposed, but there is no material impact on the Company. The Company is in process of filing a reply in the said matter," it added.

Shares of JSW Cement closed at Rs 115.65 on the BSE on Thursday, down Rs 2.60, or 2.20 per cent, from the previous close.

--IANS

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