ESL Steel, VISL subsidiary, receives ₹15.74 Crore GST demand notice
ESL Steel, a subsidiary of VISL, received a GST demand notice of ₹15.74 crore for alleged short payments under RCM from FY 2020-21 to FY 2022-23. The notice includes ₹7.87 crore IGST, ₹3.93 crore CGST, and ₹3.93 crore SGST, plus interest and penalty. ESL is reviewing the notice and anticipates no significant financial or operational impact.
The notice involves a significant amount of ₹15.74 crore, which could potentially impact the company's financials if the demand is upheld. However, the company's statement that it does not foresee a significant impact suggests that the actual financial exposure might be manageable or contestable.
The company has received a GST demand notice, which is a negative development. However, the company is examining the notice and has stated that it does not envisage any significant financial or operational impact, which mitigates the immediate negative sentiment.
Vedanta Iron and Steel Limited (VISL) has announced that its subsidiary, ESL Steel Limited (ESL), has received an intimation in Form GST DRC-01A from the Office of the Principal Commissioner, Central Goods and Service Tax & Central Excise, Ranchi.
This intimation, dated August 10, 2026, alleges a short payment of GST under the Reverse Charge Mechanism (RCM) for the financial years 2020-21 to 2022-23. The proposed tax liability amounts to ₹15,74,26,450, which includes IGST of ₹7,87,46,884, CGST of ₹3,93,39,783, and SGST of ₹3,93,39,783, along with applicable interest and penalty.
ESL is currently examining the intimation and will take appropriate steps in accordance with applicable laws within the prescribed timelines. The company does not foresee any significant financial or operational impact arising from this notice.
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