UltraTech Cement Hit with ₹13 Crore GST Demand by Ujjain Authorities

UltraTech Cement Limited informed the exchanges that it has received an order from the Additional Commissioner of CGST and Central Excise, Ujjain.

The order, dated November 4, 2025, confirms a GST demand of ₹6.49 crore. An equal amount of interest and penalty has also been levied, taking the total demand to about ₹12.99 crore. 

The company has acknowledged the order and stated that it is examining the details before taking further action.

Reason for the Demand

The tax demand relates to GST under the Reverse Charge Mechanism (RCM). It concerns the stamp duty and registration fees paid by the company while executing a lease deed. 

According to the order, these payments fall under transactions that attract GST liability under RCM provisions, meaning the recipient is required to pay the tax directly to the government.

Details of the Case

The demand was raised following a review by the CGST and Central Excise Department, Ujjain. The total liability includes the GST amount, applicable interest, and penalty under the Central Goods and Services Tax Act. 

The order is administrative in nature and does not indicate any separate or additional violation. UltraTech received the official communication on November 4, 2025.

Financial Effect

UltraTech Cement stated that there is no material financial impact from the order. The amount involved does not affect the company’s ongoing business or operations.

The firm is reviewing the order internally to determine if an appeal or clarification needs to be filed with the concerned authority.

Read More: Why Central Banks Are Increasingly Buying Gold in 2025?

UltraTech Cement Share Price Performance 

As of November 6, 2025, 10:35 AM, UltraTech Cement share price was trading at ₹11,825, a 0.05% increase from the previous close.

Conclusion

The ₹6.49 crore tax demand, along with equivalent interest and penalty, arises from the GST department’s view on stamp duty and registration fee payments under the reverse charge mechanism. UltraTech Cement has said the matter is under review, and at this stage, it does not affect its financial or operational performance.

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