Vedanta Iron And Steel's subsidiary, ESL Steel, received a GST demand notice for Rs 39.58 crore over alleged short reversal of Input Tax Credit. Management expects no material impact.
Vedanta Iron And Steel Subsidiary ESL Steel Receives Rs 39.58 Crore GST Demand
ESL Steel Limited (ESL), a subsidiary of Vedanta Iron And Steel Ltd, has been issued a Goods and Services Tax (GST) demand notice amounting to Rs 39.58 crore. ## What Just Happened The Office of the Principal Commissioner, Central Goods and Services Tax and Central Excise, Ranchi, issued a notice (Form GST DRC-01A) on August 13, 2026, alleging short reversal of Input Tax Credit (ITC) by ESL. This pertains to credit notes issued between the financial years 2020-21 and 2022-23. ## Why This Matters The proposed tax liability, excluding potential interest and penalties, stands at Rs 39.58 crore. This includes Rs 29.16 crore in IGST, Rs 3.26 crore in CGST, Rs 3.26 crore in SGST, and Rs 3.88 crore in Cess. While ESL is reviewing the notice, the significant sum demands close monitoring by investors. ## Reader Takeaway Investors should track ESL's legal defense against the Rs 39.58 crore GST demand, though management expects no material impact.
