JSW Steel Ltd has received a penalty demand of ₹64.47 crore from the GST Commissioner for non-payment under Reverse Charge Mechanism for mining rights. The company plans to challenge the penalty in appeal, the company said in a press release on the stock exchange.
JSW Steel Ltd has informed that it received an order on December 9, 2024, from the office of the Commissioner of GST and Central Excise, Belagavi Division. The order demands a penalty of ₹64.47 crore.
The demand pertains to the non-payment of GST under the Reverse Charge Mechanism (RCM) on upfront and monthly payments made to the Government for the assignment of mining rights in Karnataka for the period from July 2017 to July 2019.
The company has already discharged the appropriate tax liability under RCM along with the applicable interest, and these payments were disclosed in the monthly returns filed before the issuance of the Show Cause Notice.
Based on available judicial precedents, the company believes that the penalty is not applicable under Section 74(1). Therefore, it intends to challenge the penalty demand through an appeal.
JSW Steel has confirmed that there is no impact on the company’s financials, operations, or other activities as a result of this matter.
The company has requested that this disclosure be taken on record in compliance with the applicable regulations under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
On December 11, 2024, JSW Steel’s share price (NSE: JSWSTEEL) was trading 0.21% lower at ₹1,010.85 at 10:00 AM. The stock opened at ₹1,015.90, slightly higher than its previous close of ₹1,012.95.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Dec 11, 2024, 9:46 AM IST
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