ESL Steel Received GST Intimation Alleging Short Reversal of Input Tax Credit
ESL Steel Limited (ESL), a subsidiary of Vedanta Iron and Steel Limited (VISL), has received an intimation from tax authorities concerning alleged short reversal of Input Tax Credit (ITC) pertaining to its operations. The intimation was issued by the Office of the Principal Commissioner, Central Goods and Services Tax and Central Excise, Ranchi, on August 13, 2026.The GST DRC-01A form alleges that ESL committed a contravention under the provisions of the Central Goods & Service Tax Act, 2017 read with Jharkhand GST Act, 2017 and IGST Act, 2017. The violation relates to the short reversal of ITC during the financial years spanning FY 2020-21 to FY 2022-23, relating to the issuance of credit notes.
The Department has proposed a total tax liability amounting to ₹ 39,58,32,544/- on ESL. This amount is composed of various taxes and cess:
| Tax Component | Amount |
|---|---|
| IGST | ₹ 29,16,89,049/- |
| CGST | ₹ 3,26,41,238/- |
| SGST | ₹ 3,26,41,238/- |
| Cess | ₹ 3,88,61,019/- |
ESL is currently examining the intimation and plans to take appropriate steps in line with applicable laws within the stipulated timelines. Regarding the matter, ESL has stated that it does not envisage any material impact on its financial or operational activities due to this GST intimation.
VISL Stock Price Movement
As of 1:20 PM, shares of Vedanta Iron and Steel Limited are slipping by 4.46% in live trading, with the stock currently at ₹37.06. The equity has seen a substantial volume trade of 17.42 million shares during the ongoing session.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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