Dalmia Bharat’s subsidiary, Dalmia Cement (Bharat) Limited (DCBL), has been issued two major show-cause notices by the Tamil Nadu Sales Tax Department. A total of ₹266.3 crore in taxes and penalties have been claimed against the company. What is the reason?
The tax department has found discrepancies in the company’s taxable turnover (i.e., the portion of sales subject to GST) and input tax credit (ITC) over the past two years. This means there’s a discrepancy between the sales reported and the input credit claimed. The notices have been issued in light of this. The company has stated that this will have no financial impact.
Dalmia Bharat has clearly stated in a filing with the stock exchange that these show-cause notices will have no financial impact on the company. This means the company is confident that it will present its case strongly and will not have to pay this amount. Dalmia Bharat’s stock has risen 13% this year.
Dalmia Bharat’s stock has risen 13% in the past year. Its stock started 2025 at ₹1,771 and has now reached ₹2,010. The company’s stock has declined 3% in the past six months.
