UltraTech Cement Receives ₹5.49 Crore GST Demand Order on Corporate Guarantee
UltraTech Cement has received a GST demand order of Rs. 5.49 crore plus penalty on a corporate guarantee, which the company says will not materially impact its finances
UltraTech Cement Limited has received an order from the Goods and Services Tax authority which has confirmed a demand of Rs. 5.49 crore along with interest and an additional penalty of Rs. 54.9 lakh. The order was passed by the Commissioner of Appeals in Nagpur and was communicated to the company on August 20, 2025. The issue is related to a corporate guarantee given by UltraTech...
UltraTech Cement Limited has received an order from the Goods and Services Tax authority which has confirmed a demand of Rs. 5.49 crore along with interest and an additional penalty of Rs. 54.9 lakh. The order was passed by the Commissioner of Appeals in Nagpur and was communicated to the company on August 20, 2025.
The issue is related to a corporate guarantee given by UltraTech Cement. According to the tax department, providing such a guarantee is treated as a service under the GST framework and is therefore subject to tax. The department had earlier passed an order raising the demand, and this decision has now been upheld in appeal.
The company has stated that it is reviewing the order in detail and will decide on its next steps after considering all legal and financial aspects. UltraTech also made it clear that the order will not have a material impact on its financial position or day to day operations.
Corporate guarantees have been a point of debate in the GST regime. Authorities have argued that when a parent company gives a guarantee on behalf of its subsidiary, it is providing a taxable service.
Several large companies across different sectors have faced similar disputes in recent years. This case adds to the growing list of matters where businesses are being asked to pay GST on financial transactions that were earlier not considered taxable.
For investors, the amount involved is large but the company does not expect any huge effect on its performance.
About Company
UltraTech Cement is the largest producer of grey cement, ready mix concrete and white cement in India. It is part of the Aditya Birla Group, one of the country’s leading industrial conglomerates. The company has a strong presence across India as well as in several international markets. With a capacity of over 140 million tonnes per annum, it plays a key role in supporting India’s infrastructure and housing needs.
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