Dalmia Bharat Subsidiary Wins Rs 266 Crore GST Relief
In a significant legal victory, Dalmia Bharat’s subsidiary Dalmia Cement (Bharat) Limited (DCBL) has secured relief from tax demands and penalties totaling over Rs 266 crore. The Sales Tax Officer in Lalgudi, Tiruchirapalli, dropped proceedings related to show-cause notices under Central and Tamil Nadu GST Acts.
Key Takeaways
- Total relief of Rs 266.31 crore granted to Dalmia Cement
- No financial impact on the company as per regulatory filing
- Resolves major contingent liability for the cement manufacturer
Detailed Breakdown of Relief
According to regulatory filings made to stock exchanges, the demands concerned differences in taxable turnover and input tax credit for assessment years 2019-20 and 2022-23.
For 2019-20:
- Tax demand waived: Rs 128.40 crore
- Penalty waived: Rs 19.26 crore
For 2022-23:
- Tax demand dropped: Rs 59.33 crore
- Penalty dropped: Rs 59.33 crore
The total relief amounts to ₹187.72 crore in tax and ₹78.59 crore in penalties.
Formal Orders and Impact
The company received formal orders on the evening of November 28, 2025. In its SEBI filing, Dalmia Bharat explicitly stated that “there will be no financial impact on DCBL” from this decision.
This development removes a significant contingent liability that was pending against the cement manufacturer. The resolution is expected to be viewed positively by investors, as it settles a substantial regulatory dispute without requiring any financial payment from the company.
Dalmia Bharat Limited remains one of India’s leading cement manufacturing companies.
