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JSW Cement Receives Rs. 2.3 bn GST Demand Notice

JSW Cement faces a GST demand over alleged incorrect classification.

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JSW Cement has received a show-cause notice proposing a Goods and Services Tax (GST) demand of Rs. 2.3 bn, along with applicable interest and a 10 per cent penalty, over an alleged incorrect classification of transactions. The notice was issued by the Additional Commissioner of Central Tax, Belagavi Audit Commissionerate, on September 24, 2026.

The proposed demand relates to the period from April 2022 to March 2024 and has been issued under Section 73 of the Central Goods and Services Tax (CGST) Act, 2017. The company disclosed the notice in a filing with the stock exchanges and said the matter involved an alleged short payment of GST.

The proposed amount comprises Integrated GST (IGST) of Rs. 1.22 bn, Central GST (CGST) of Rs. 540.5 mn and State GST (SGST) of Rs. 540.5 mn. The department has also cited alleged contraventions of Sections 9, 37 and 39 of the CGST Act, with interest proposed under Section 50 and the penalty under Section 73.

JSW Cement said the financial impact of the notice would be limited to the proposed tax demand, applicable interest and penalty. However, it assessed that the matter would not have a material impact on the company. The cement manufacturer is preparing its reply to the show-cause notice.

The notice was issued to JSW Cement, which is part of the Sajjan Jindal-promoted JSW Group. The company reiterated that the total proposed GST demand stood at Rs. 2.3 bn, excluding the applicable interest and 10 per cent penalty, and that the proceedings remained at the show-cause stage.

Shares of JSW Cement ended at Rs. 115.65 on the BSE on Thursday, down Rs. 2.60, or 2.20 per cent, from the previous close. The stock movement came as the company disclosed the proposed tax demand and its intention to respond to the department’s notice.

Concrete

JSW Cement commissions additional 1 MTPA grinding unit in Rajasthan

The Nagaur expansion takes JSW Cement’s total grinding capacity to 25.10 MTPA.

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JSW Cement has commissioned an additional 1 million tonne per annum (MTPA) cement grinding unit at its Nagaur Integrated Plant in Rajasthan. The commissioning takes the company’s total cement grinding capacity to 25.10 MTPA. 
JSW Cement’s total clinker manufacturing capacity, including its joint venture JSW Cement FZC, now stands at 9.74 MTPA.
The company began operations in North India in March 2026 with the Nagaur Integrated Plant, comprising a 3.30 MTPA clinkerisation unit and a 2.50 MTPA cement grinding unit. With the latest expansion, the plant’s total grinding capacity has increased to 3.50 MTPA.
The additional capacity will cater to cement demand across Rajasthan, Haryana, Punjab and the National Capital Region (NCR). The expansion has been funded through a combination of equity and long-term debt.
During the quarter ended September 30, 2026, JSW Cement also commissioned an Alternate Fuel Handling System and a Waste Heat Recovery System (WHRS) at the Nagaur plant.
Nilesh Narwekar, CEO, JSW Cement, said the additional grinding capacity was a strategic priority for the company’s expansion in North India. He added that the Alternate Fuel Handling System and WHRS were expected to reduce production costs.

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JSW Cement Boards Approve Proposed Shiva Cement Merger

JSW Cement will issue five shares for every 41 Shiva Cement shares

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The Boards of Directors of JSW Cement and its listed subsidiary Shiva Cement have approved a scheme of arrangement for the amalgamation of Shiva Cement with and into JSW Cement. The proposed merger is intended to create a unified cement platform and generate operational, financial and management synergies.

The consolidation will pool the companies’ financial, managerial, technical, distribution and marketing resources. It will also support backward integration through Shiva Cement’s clinker facility, which is expected to reduce reliance on external procurement and improve supply chain efficiency.

The companies said the transaction would provide greater funding flexibility, reduce financing costs and eliminate inter-company guarantees. It is also expected to simplify the corporate structure by reducing administrative duplication, compliance requirements and consolidation efforts, while aligning the financial statements of both entities.

Under the approved share-exchange ratio, JSW Cement will issue five equity shares with a face value of Rs. 10 each for every 41 equity shares with a face value of Rs. 2 each held in Shiva Cement. The issuance will apply to Shiva Cement shareholders other than JSW Cement and will give the subsidiary’s public shareholders direct ownership in a larger listed company.

The scheme remains subject to approvals from the stock exchanges, the Securities and Exchange Board of India, the National Company Law Tribunal, the Odisha Industrial Infrastructure Development Corporation and other applicable statutory and regulatory authorities. Approval from the companies’ shareholders and creditors may also be required under applicable laws or directions from the tribunal. The transaction is expected to be completed within 12 to 14 months, subject to the timely receipt of these approvals.

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JSW Cement commissions additional 1 MTPA grinding unit at Nagaur

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With this commissioning, JSW Cement’s total cement grinding capacity has increased to 25.10 MTPA, 
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JSW Cement, one of India’s leading green cement producers and part of the diversified JSW Group, today announced the successful commissioning of an additional 1.00 MTPA cement grinding unit at Nagaur, Rajasthan. The commissioning marks another significant milestone in the Company’s growth strategy.

With this commissioning, JSW Cement’s total cement grinding capacity has increased to 25.10 MTPA, while its total clinker manufacturing capacity, including clinker capacity at its joint venture, JSW Cement FZC, stands at 9.74 MTPA.

JSW Cement had commenced operations in North India in March 2026 with the Nagaur Integrated Plant, comprising a 3.30 MTPA clinkerisation unit and 2.50 MTPA cement grinding unit. With the commissioning of the additional 1.00 MTPA cement grinding unit, the plant’s total cement grinding capacity has increased to 3.50 MTPA, enhancing the company’s ability to cater to the growing cement demand across Rajasthan, Haryana, Punjab and the National Capital Region (NCR). The expansion has been funded through a strategic mix of equity and long-term debt.

During the quarter ended 30th September 2026, JSW Cement has also commissioned the Alternate Fuel Handling System and the Waste Heat Recovery system (WHRS) at the Nagaur Integrated Plant.

Nilesh Narwekar, CEO, JSW Cement, said: “The commissioning of additional 1.00 MTPA grinding capacity at Nagaur is a key strategic priority for us and will accelerate JSW Cement’s expansion into North India. We look forward to servicing the growing needs of the region and contributing to the economic growth of Rajasthan, Haryana, Punjab and the NCR area. I am delighted to share that the company has commissioned this grinding unit within the expected timeline, showcasing our project execution capabilities. Further, the Alternate Fuel Handling System and the Waste Heat Recovery system (WHRS) are expected to substantially reduce our production costs going forward.”

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