VISL Subsidiary ESL Receives ₹39.58 Crore GST Demand Notice
VISL's subsidiary, ESL Steel, received a GST demand notice for ₹39.58 crore concerning alleged wrongful ITC utilization from FY21-FY23. The notice includes proposed recoveries for IGST, CGST, SGST, and Cess, along with interest and penalty. ESL is reviewing the notice and plans legal action. The company anticipates no material financial or operational impact.
While the company claims no material impact, a demand of ₹39.58 crore is substantial and could potentially affect financial performance if the outcome is unfavorable, warranting a medium impact assessment.
The company has received a significant demand notice, which is a negative development. However, the company states that it is examining the notice and does not anticipate any material financial or operational impact, which mitigates the negativity.
Vedanta Iron and Steel Limited (VISL) has disclosed that its subsidiary, ESL Steel Limited (ESL), received a Demand-cum-Show Cause Notice from the Office of the Principal Commissioner, Central Goods and Services Tax & Central Excise, Ranchi on August 27, 2026. The notice proposes a recovery of ₹39,58,32,544, which includes IGST of ₹29,16,89,049, CGST of ₹3,26,41,238, SGST of ₹3,26,41,238, and Cess of ₹3,88,61,019. This demand is related to the alleged wrongful availment and utilization of Input Tax Credit (ITC) in connection with credit notes during the financial years 2020-21 to 2022-23, along with applicable interest and penalty. ESL is currently examining the notice and will take appropriate legal steps within the stipulated timelines. The company does not anticipate any significant financial or operational impact on VISL as a result of this notice. This disclosure follows a prior intimation submitted on August 14, 2026.
A plain-language summary of a public exchange filing by Vedanta Iron and Steel Limited. Read the original for the full detail.