ESL Steel Ltd, a subsidiary of Vedanta Iron and Steel Ltd, has received a GST demand-cum-show cause notice proposing recovery of ₹11.77 crore in GST and reversal of input tax credit (ITC), along with applicable interest and penalty.The notice was received on October 26 in connection with observations arising from GST audit proceedings for financial years 2022-23 and 2023-24, Vedanta Iron and Steel said in a stock exchange disclosure dated October 27. The proposed demand aggregates ₹11,76,63,519, comprising ₹6.99 crore in integrated GST (IGST), ₹2.39 crore in central GST (CGST) and ₹2.39 crore in state GST (SGST). According to the disclosure, the allegations relate to the purported short payment of GST and irregular or excess availment of input tax credit identified during the audit proceedings. The notice was issued by the Joint Commissioner, GST and Central Excise, Audit, Bhubaneswar.ESL Steel is examining the notice and will take appropriate steps under applicable laws within the prescribed timelines, the company said.Vedanta Iron and Steel said it did not envisage any significant financial or operational impact on the company arising from the notice. The subsidiary is evaluating appropriate legal remedies and will take necessary action in accordance with applicable laws. The disclosure was made under Regulation 30 of the Securities and Exchange Board of India’s Listing Obligations and Disclosure Requirements Regulations, 2015.
