Orient Cement Limited — Important, 24-02-2025: General Updates

An order has been issued by the Additional Commissioner (ST), Appellate Authority, Tirupati, confirming a GST demand against Orient Cement amounting to ₹12.35 lakh (12.35 Cr) plus interest of ₹7.73 lakh (7.73 Cr) and a penalty of ₹1.23 lakh (1.23 Cr). The order pertains to the wrongful availment of Input Tax Credit on gold coins and other goods treated as "gifts" given to dealers as incentives, which were deemed not incurred in the course of furthering the company’s cement business. Despite this order, the company anticipates minimal financial impact, as the total demand is limited to the stated figures. Orient Cement believes it has a strong case and plans to appeal the decision before the Tribunal, presenting a potentially favorable environment for future proceedings.