JSW Steel informed that it has received a show cause notice with penalty amounting to Rs 64.47 crore from GST and Central Excise Authority for non-payment of GST under Reverse Charge Mechanism (RCM).
The company received the demand order from Office of the Commissioner of GST and Central Excise, Belagavi Division, for Rs 64,47,20,900 for alleging non-payment of GST under RCM on upfront payments and monthly payments made to Government for assignment of mining rights for the period from July 2017 to July 2019 in Karnataka.The steel major stated that it has already discharged the appropriate tax liability under reverse charge along with applicable interest and the same were disclosed in the monthly returns prior to the issuance of the show cause notice.
The company basis the judicial precedents available, believes that the penalty under Section 74(1) is not leviable. Accordingly, the aforesaid demand of penalty is proposed to be challenged in appeal.
JSW Steel also added that there is no impact on the financials, operations or other activities of the company.
JSW Steel, the flagship business of the diversified JSW Group, is India's leading integrated steel company.
The companys net profit slumped 85.43% to Rs 404 crore on 10.90% decline in total revenue to Rs 39,684 crore in Q2 FY25 over Q2 FY24.
The scrip shed 0.76% to Rs 1,005.35 on the BSE.
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