Tamil Nadu Tax Authority Drops Rs 266.3 Crore GST Demand Against Dalmia Cement

Overview

• Dalmia Cement (Bharat) Ltd had received two show-cause notices for AY 2019-20 and 2022-23 from the Sales Tax Officer in Lalgudi, Tiruchirapalli, under the CGST and TNGST Acts.
• The withdrawn demand covered tax of Rs 128.39 crore and a Rs 19.25 crore penalty for 2019-20, plus tax of Rs 59.32 crore and an equal penalty for 2022-23.
• The company disclosed on November 28, 2025, that it had received the orders, and a subsequent filing reported the demand was dropped in adjudication.
• The notices cited differences between reported taxable turnover and the amount of input tax credit claimed for the two assessment years.
• Dalmia Bharat said there will be no financial impact on its wholly owned subsidiary as a result of the proceedings.