Subsidiary ESL Receives Intimation Over Alleged Excess Input Tax Credit Utilization
ESL Steel Limited (ESL), a subsidiary of Vedanta Iron and Steel Limited (VISL), has received an intimation from the Principal Commissioner of Central Goods and Services Tax & Central Excise in Ranchi concerning the alleged excess availment and utilization of Input Tax Credit (ITC). The communication was received on August 07, 2026.The intimation relates to the use of ITC on imports of goods during the Financial Years (FY) 2020-21 to FY 2022-23. The Central Tax Department alleged that ESL violated relevant provisions of the Central Goods and Service Tax Act, 2017, read with the IGST Act, 2017 and GST (Compensation to States) Act, 2017.
The details regarding the financial aspect of the contravention are as follows:
| Particulars | Alleged Amount (Rs.) |
|---|---|
| Total ITC allegedly availed/utilized excessively | 51,23,19,275/- |
| IGST Component | 6,73,39,655/- |
| CESS Component | 44,49,79,620/- |
Following the receipt of the intimation in form GST DRC-01A dated August 07, 2026, ESL is currently reviewing the matter and stated that appropriate steps will be taken in compliance with applicable laws within prescribed timelines.
Regarding the impact of this intimation on the company, officials noted that there is no material financial or operational impact on ESL Steel Limited.
VISL Stock Price Movement
Shares of Vedanta Iron and Steel Limited slipped on Friday by 2.06%, settling at ₹35.21 after the stock shed ₹0.74 during trading. The equity saw a volume totaling 23.80 million shares throughout the day.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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