NSE/BSE Codes: NSE: VISL, BSE: 544784

Summary of Key Information:

Nature of Event / Disclosure:

Regulatory disclosure under SEBI LODR Regulation 30 regarding receipt of GST demand-cum-show cause notice by subsidiary company ESL Steel Limited.

Involved Parties / Authorities:

  • ESL Steel Limited (subsidiary of VISL)
  • Joint Commissioner, GST & Central Excise, Audit Bhubaneswar
  • GST Authorities

Date / Timeline of Event:

  • Notice received: Monday, October 26, 2026 at approximately 04:25 pm
  • Disclosure filed: October 27, 2026
  • Audit periods covered: FY 2022-23 to FY 2023-24

Brief Description of Outcome / Dispute:

ESL Steel Limited received a Demand-cum-Show Cause Notice from GST Authorities in connection with observations arising out of GST audit proceedings. The notice proposes recovery of GST and reversal of input tax credit aggregating to ₹11,76,63,519/- (approximately ₹11.77 crore).

Impact of Outcome:

Financial Impact:
  • Total demand amount: ₹11,76,63,519/-
  • Breakdown: IGST of ₹6,98,75,763/-, CGST of ₹2,38,93,878/-, and SGST of ₹2,38,93,878/-
  • Additional applicable interest and penalty may apply
  • The Company states it does not envisage any significant financial impact
Operational / Business / Strategic Impact:
  • The Company states it does not envisage any significant operational impact
  • No material impact on financial, operations or other activities anticipated
Other Implications:
  • Regulatory compliance matter under GST laws
  • Requires response to show cause notice within prescribed timelines

Next Steps / Required Actions:

  • ESL is examining the notice
  • Will take appropriate steps in accordance with applicable laws within prescribed timelines
  • Evaluating appropriate legal remedies