ESL Steel, a subsidiary of Vedanta Iron & Steel, has received a GST demand-cum-show cause notice of ₹15.74 crore from the Joint Commissioner, CGST & Central Excise, Ranchi. The notice relates to alleged short payment of GST during FY21–FY23.
The proposed demand comprises ₹7.87 crore IGST, ₹3.93 crore CGST and ₹3.93 crore SGST, along with applicable interest and penalty. The allegation relates to GST payable under the Reverse Charge Mechanism (RCM).
ESL is examining the notice and evaluating appropriate legal remedies. Importantly, the company has indicated that it does not expect any material financial or operational impact from the matter at this stage.
The notice is currently a proposed demand, not a final tax order, so the eventual financial liability could change depending on ESL's response and the outcome of the proceedings.
