Saurashtra Cement hit with Rs 16.56 crore tax demand

Saurashtra Cement Limited announced today, October 25, 2025, that it has received a demand order from the Office of the Commissioner of Central Excise & CGST, Bhavnagar, relating to the period from financial year 2018-19 to 2023-24.

The demand order is for an aggregate amount of INR 16.56 crores, comprising a tax demand of INR 7.74 crores and a penalty of INR 8.82 crores, along with applicable interest. The demand stems from the alleged ineligible availment and utilization of Input Tax Credit (ITC) under various sections of the Central Goods and Services Tax (CGST) Act, 2017, and related acts and rules.

Saurashtra Cement stated that, based on its assessment, the demand is not maintainable. The company is currently evaluating all available options, including the possibility of filing an appeal against the order. The company does not anticipate any relevant impact on its financials, operations, or other activities as a result of this order.