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Shares of JSW Steel Ltd ended at ₹1,013.00, up by ₹0.35, or 0.035% on the BSE.
Steelmaker JSW Steel Ltd on Tuesday (December 10) said a penalty of ₹64.47 crore has been imposed by the Office of the Commissioner of GST and Central Excise, Belagavi Division. The penalty relates to the alleged non-payment of GST under the Reverse Charge Mechanism for mining rights payments in Karnataka during the period of July 2017 to July 2019.
"This has reference to the aforementioned subject order dated 05.12.2024 received by JSW Steel Ltd on 09.12.2024, from the Office of The Commissioner of GST and Central Excise, Belagavi Division, where in demand of penalty amounting to Rs 64,47,20,900 has been levied under Section 74(1) of the CGST/KGST Act, 2017, alleging non-payment of GST under Reverse Charge Mechanism 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," JSW Steel said in a regulatory filing.
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JSW Steel stated that it had already paid the applicable GST liability, including interest, and reported these in its monthly GST filings before the issuance of the show cause notice. "The company has already discharged the appropriate tax liability under reverse charge along with applicable interest and the same were disclosed in the monthly returns submitted by the company prior to the issuance of the Show Cause Notice," it said.
The company, referencing judicial precedents, believes the penalty is unwarranted and intends to contest the demand through an appeal. "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. There is no impact on the financials, operations or other activities of the company," it added.
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Shares of JSW Steel Ltd ended at ₹1,013.00, up by ₹0.35, or 0.035% on the BSE.
