ACC Limited has received Orders from the Joint Commissioner of Central Tax, GST Commissionerate, East Bengaluru, Karnataka levying penalty of INR 2,82,94,728/- passed under section 74(1) of Central Goods and Services Act, 2017 /KGST Act. The Company is taking appropriate steps to appeal against the said orders imposing the penalty before the appropriate authority. Order passed u/s 74(1) of CGST Act, 2017 /KGST Act, 2017 levying GST of INR 2,82,94,728/- with applicable Interest and Penalty of INR 2,82,94,728/-.

The GST liability was discharged and the same has been appropriated against the GST liability. Details of the violation(s) /contravention(s) committed or alleged to be committed: Demand of GST on advance payment of upfront fees paid for procurement of Kannur (Wadi Area) Limestone Block mining lease. Although the GST amount was paid, however, 100% penalty has been imposed.

The Company is taking appropriate steps to appeal against the above Order before the appropriate authority. The Company does not foresee any material impact on financial or operational or other activities of the Company.