UltraTech Cement has announced that it has received an order from the Assistant Commissioner, CGST & C. Ex Division 3, Bhavnagar, demanding a payment of Rs. 1.14 crore for Goods and Services Tax (GST), along with interest and penalties which is equal to the demand payment. The demand is related to an alleged non-payment of differential GST on the royalty of mined limestone.
The company said during a filing with the Bombay Stock Exchange (BSE), the order has been issued, confirming the requirement to pay Rs. 1,14,87,546 as Goods and Services Tax (GST), along with interest and penalties of Rs. 1,14,87,546. This amount is related to the differential GST calculated at 13% (18% less 5%), on the royalty received from mined limestone.
The company said that it would take legal action to challenge this order, as it believes that the differential duty, along with the interest, has already been paid, but the authority has not recognized it.
In the second quarter of the fiscal year 2023-24, UltraTech Cement reported a significant increase in its consolidated net profit, which grew by 68.76 percent. The profit after tax for the Q2 FY24, amounted to Rs. 1,280.30 crore, compared to Rs. 758.70 crore in the same quarter of the previous fiscal year.
Furthermore, the company’s total consolidated income for the second quarter of FY24 reached Rs. 16,179.26 crores, showing a growth of 15.25 percent compared to Rs. 14,038.95 crores for the same quarter the previous year.
Similar: GST Impact on the Indian Cement Industry
As of September 30, 2023, UltraTech Cement’s net worth stood at Rs. 58,203.83 crore. The company’s financial ratios indicate a debt-equity ratio of 0.18, total debts to total assets ratio of 11%, a current ratio of 1.05, a current liability ratio of 51%, an operating margin of 16%, and a net profit margin of 8%.
