NEW DELHI: ESL Steel Limited, a key subsidiary of Vedanta Iron and Steel Limited, has received a Demand-cum-Show Cause Notice (SCN) from the Goods and Services Tax (GST) authorities totaling ₹11.76 crore (approximately ₹11.77 crore).
The notice, issued by the Joint Commissioner of GST & Central Excise, Audit Bhubaneswar, stems from observations compiled during GST audit proceedings covering the financial years 2022–23 and 2023–24.
Breakdown of the Tax Demand
According to the regulatory disclosure made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the aggregate demand of ₹11,76,63,519 comprises:
Integrated GST (IGST): ₹6,98,75,763
Central GST (CGST): ₹2,38,93,878
State GST (SGST): ₹2,38,93,878
The tax authorities have proposed the recovery of these short-paid taxes alongside the reversal of alleged irregular or excess Input Tax Credit (ITC). Applicable interest and statutory penalties have also been levied under the provisions of the GST laws.
Company Stance and Legal Response
Responding to the development, Vedanta Iron and Steel stated that ESL Steel is currently reviewing the contents of the audit-based SCN. The company intends to pursue appropriate legal remedies and file a formal response within the timelines prescribed under the statute.
Furthermore, management has assured stakeholders that the demand notice is not expected to cause any significant disruptions or material impacts on the company’s day-to-day financial, operational, or business activities.
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