Key Details
Entity Involved: ESL Steel Limited (subsidiary of Vedanta Iron And Steel Limited)
Authority: Office of the Principal Commissioner, Central Goods and Services Tax & Central Excise, Ranchi
Document Received: Intimation in Form GST DRC-01A under Section 74(5) of the Central Goods and Services Tax Act, 2017
Date of Receipt: August 10, 2026 at approximately 11:28 AM
Allegations and Financial Details
The tax department has alleged short payment of GST under Reverse Charge Mechanism (RCM) during the period FY 2020-21 to FY 2022-23. The proposed tax liability amounts to ₹15,74,26,450/- (Fifteen Crore Seventy-Four Lakh Twenty-Six Thousand Four Hundred Fifty Rupees), comprising:
- IGST: ₹7,87,46,884/-
- CGST: ₹3,93,39,783/-
- SGST: ₹3,93,39,783/-
The amount is accompanied by applicable interest and penalty (quantum not specified).
Legal Basis
The alleged contravention is under the provisions of the CGST Act, 2017, read with Jharkhand GST Act, 2017 and IGST Act, 2017.
Company Response and Impact Assessment
ESL Steel Limited is examining the intimation and shall take appropriate steps in accordance with applicable laws within the prescribed timelines. The company explicitly states that it does not envisage any significant financial and operational impact from this intimation.