India’s cement producer Dalmia Cement (Bharat) Ltd has received a full reprieve, after the Tamil Nadu tax department dropped all tax and penalty demands totalling INR2.66bn (US$29.01m). The demands arose from earlier show-cause notices under the Central and Tamil Nadu GST Acts related to discrepancies in taxable turnover and input-tax credit for FY19-20and FY22-23.
For FY19-20, the proposed assessment included a tax demand of INR1.28bn and a penalty of INR193m while for 2022-23 the demand stood at INR593m plus an identical penalty.
In its regulatory filing, Dalmia Cement said the adjudicating authority in Lalgudi, Tiruchirapalli dropped the proposed demands — meaning there is no financial impact on the company.
Headquartered in Tamil Nadu, Dalmia Cement is part of one of India’s largest cement manufacturers, with an installed capacity of 49.5Mta.
The decision removes a major contingent liability, restoring certainty for investors and reinforcing the company’s compliance standing — a welcome outcome for a sector increasingly under regulatory scrutiny.
