Orient Cement Receives Tax Notice, The Cement Giant Responds

Orient Cement received a notice from the Additional Commissioner, Central Tax, Belagavi, Karnataka about irregularities in Goods And Services Tax (GST). The cement company responded via a BSE filing announcing their stance.

What Is The Issue

The notice from the additional commissioner, confirmed the demand for "GST Rs. 6,45,65,663 + Interest + Penalty Rs 6,45,65,663 on Input Tax Credit taken on Railway Siding Set-up.", the filing said.

The Company has been accused of wrongfully availing the Input Tax Credit taken on Railway Siding Set-up treating it as “Immovable Property”, the order further said.

Orient Cement Responds

Orient Cement has said they will contest the order, claiming the accusations are incorrectly placed. "The Company intends to contest the order, since it has a strong case on merit.", the company said in the filing.

Acquired By Adani

Orient Cement was acquired by Adani Group in 2024. As per media reports this acquisition has sparked fear among employees regarding job security. Orient Cement presently hires over 2,300 employees.