Dalmia Bharat Limited on June 13, 2025, announced that its wholly-owned subsidiary, Dalmia Cement (Bharat) Limited (DCBL), has received significant relief from Goods and Services Tax (GST) authorities. Orders have been passed waiving off entire interest and penalties amounting to a total of ₹29,00,520 (approximately ₹29.01 lakh) related to financial years 2018-19 and 2019-20. The orders were received on June 12, 2025, at 11:27 A.M.
This development follows applications filed by DCBL under Section 128A of the Central Goods and Services Tax (CGST) Act, 2017, seeking waiver of these demands. The Office of Assistant Commissioner of GST & Central Excise, Bokaro-II Division, Ranchi, Jharkhand, approved the applications, leading to the complete waiver of the specified interest and penalties.
| Financial Year | Nature of Demand Waived | Amount Waived (₹) | Original Issue Context |
|---|---|---|---|
| 2018-19 | Interest | 23,56,554 | Related to claim of ineligible input tax credit |
| 2018-19 | Penalty | 5,23,966 | Related to claim of ineligible input tax credit |
| 2019-20 | Penalty | 20,000 | Related to short payment of self-assessed tax (tax component already paid) |
| Total Amount Waived | 29,00,520 | Combined interest and penalties for FY19 & FY20 | |
Detailed Breakdown of GST Waivers
The disclosure, made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, provided details of the two separate matters for which relief has been granted. This is in continuation of earlier disclosures made by the company on May 4, 2024, and August 28, 2024.
Relief Pertaining to FY 2018-19
For the financial year 2018-19, DCBL had faced demands for interest and penalty stemming from an order issued under Section 73 of the CGST Act, 2017. The order was from the Additional Commissioner, CGST & Central Excise Commissionerate, Ranchi, Jharkhand. This pertained to a claim of ineligible input tax credit and its reversal, originally related to Dalmia Cement East Limited, which has since merged with DCBL.
The authorities had confirmed the following demands for FY 2018-19:
- Interest: ₹23,56,554
- Penalty: ₹5,23,966
Following an application by DCBL under Section 128A of the CGST Act for waiver, the Office of Assistant Commissioner of GST & Central Excise, Bokaro-II Division, Ranchi, Jharkhand, passed an order approving the application. This resulted in the complete waiver of the entire interest of ₹23,56,554 and the entire penalty of ₹5,23,966 for this period.
Relief Pertaining to FY 2019-20
For the financial year 2019-20, DCBL had received an order under Section 73 of the CGST Act, 2017, from the Superintendent, Central GST and Central Excise, Range-II, Bokaro Steel City, Jharkhand. This was related to a short payment of self-assessed tax liability amounting to ₹66,255. While the tax liability itself had already been paid by DCBL, the authorities had confirmed a penalty demand.
The confirmed demand for FY 2019-20 was:
- Penalty: ₹20,000
DCBL submitted an application for waiver of this penalty under Section 128A of the CGST Act. The Office of Assistant Commissioner of GST & Central Excise, Bokaro-II Division, Ranchi, Jharkhand, subsequently passed an order allowing the application and waiving off the entire penalty of ₹20,000.
Implications for Dalmia Cement
The company stated in its regulatory filing that "Accordingly, there will be no financial impact on DCBL" for both these waivers. This typically indicates that the company will not face any adverse cash outflow due to these demands now being waived. The waiver of these demands, totaling ₹29,00,520, effectively removes potential liabilities from the company's books, which can be seen as a positive financial development. It may also lead to a reversal of provisions if any were made earlier for these contingent liabilities.
The successful applications under Section 128A of the CGST Act, 2017, highlight the company's proactive approach in addressing these GST matters. This section of the CGST Act allows for the waiver of penalties or fees under specific conditions, providing a mechanism for taxpayers to seek relief.
Company Background
Dalmia Cement (Bharat) Limited (DCBL) is a significant player in the Indian cement industry and operates as a wholly-owned subsidiary of Dalmia Bharat Limited. Dalmia Bharat Limited is a diversified conglomerate with interests in cement, sugar, and refractories, and is listed on both the BSE Limited (Scrip Code: 542216) and the National Stock Exchange of India Limited (Symbol: DALBHARAT).
Regulatory Disclosure and Market Context
The information was disseminated to the stock exchanges as per the requirements of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023. Such disclosures ensure transparency and keep investors informed about material developments within the company.
The waiver of tax-related demands is generally viewed positively by the market, as it reduces financial uncertainty and potential future outflows for the company. While the direct impact on the stock price would depend on various market factors, the removal of these contingent liabilities strengthens the financial position of DCBL and, by extension, its parent company Dalmia Bharat Limited.
The company's communication was signed by Rajeev Kumar, Company Secretary of Dalmia Bharat Limited.
