ESL Steel Faces GST Notice Regarding Alleged Short Payment Under Reverse Charge Mechanism
ESL Steel Limited, a subsidiary of Vedanta Iron and Steel Limited, has received an intimation from tax authorities regarding an alleged short payment of Goods and Services Tax (GST) under the Reverse Charge Mechanism (RCM). The notice concerns transactions spanning the financial years 2020-21 to 2022-23.The Central Tax Department, Ranchi, issued the intimation in Form GST DRC-01A on August 10, 2026. The department has alleged a short payment of GST during this period, which is subject to applicable interest and penalty charges.
According to the tax notice, the proposed tax liability amounts to ₹ 15,74,26,450/-. This amount comprises:
- IGST: ₹ 7,87,46,884/-
- CGST: ₹ 3,93,39,783/-
- SGST: ₹ 3,93,39,783/-
ESL is currently examining the intimation and stated it will take appropriate steps in accordance with applicable laws within the prescribed timelines.
Regarding the impact of this matter on the listed entity's operations, ESL confirmed that it does not envisage any significant financial or operational detriment due to the tax intimation.
VISL Stock Price Movement
Today, Vedanta Iron and Steel Limited shares rallied to close at ₹36.97 after gaining 5.00% in the post-market trading session. The stock saw high volatility during the day, closing near its upper range after nearly 19.8 million shares were traded.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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