NSE/BSE Codes: NSE: VISL, BSE: 544784
Summary of Key Information:
Nature of Event / Disclosure:
Regulatory disclosure regarding a Demand-cum-Show Cause Notice received by ESL Steel Limited, a subsidiary of Vedanta Iron And Steel Limited, from GST authorities.
Involved Parties / Authorities:
- Office of the Principal Commissioner, Central Goods and Services Tax & Central Excise, Ranchi
- ESL Steel Limited (Subsidiary)
- Vedanta Iron And Steel Limited (Parent Company)
Date / Timeline of Event:
- August 13, 2026: Form GST DRC-01A intimation received
- August 14, 2026: Initial intimation to exchanges (Reference No. VISL/SEC./SE/2026-27/26)
- August 27, 2026: Demand-cum-Show Cause Notice received at approximately 3:24 pm
- August 28, 2026: Current disclosure filed with exchanges
Brief Description of Outcome / Dispute:
The notice alleges wrongful availment and utilization of Input Tax Credit (ITC) amounting to ₹39,58,32,544 relating to credit notes during financial years 2020-21 to 2022-23. The notice was issued subsequent to a Form GST DRC-01A intimation dated August 13, 2026.
Impact of Outcome:
Financial Impact:
The total demand comprises:
- IGST: ₹29,16,89,049
- CGST: ₹3,26,41,238
- SGST: ₹3,26,41,238
- Cess: ₹3,88,61,019
- Total: ₹39,58,32,544
Plus applicable interest and penalty.
The company states it does not envisage any significant financial impact on the company.
Operational / Business / Strategic Impact:
The company states it does not envisage any significant operational impact on the company.
Other Implications:
No material disclosures in this section.
Next Steps / Required Actions:
ESL Steel Limited is examining the notice and shall take appropriate steps in accordance with applicable laws within the prescribed timelines. The company will submit its response to the authorities within the prescribed timeline.