JSW Steel gets GST Demand Order of Rs.64.5 Crore over Payments of Mining Rights:

JSW Steel gets GST Demand Order of Rs.64.5 Crore over Payments of Mining Rights India's Steelmaker JSW Steel Ltd announced on Tuesday, December 10, that the Office of the Commissioner of GST and Central Excise, Belagavi Division, had issued a penalty of Rs.64.47 crore. The penalty is for alleged non-payment of GST under the Reverse Charge Mechanism for mining rights payments in Karnataka from July 2017 to July 2019. JSW Steel said in a regulatory filing, "This has reference to the aforementioned 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 claimed that it had already paid the applicable GST amount, including interest, and declared it in its monthly GST filings before receiving the show cause notice. "The company has already paid 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," according to the statement. Citing judicial precedent, the company believes that the penalty is unjustified and wants to file an appeal. "Based on available judicial precedents, the company thinks that the penalty under Section 74(1) is not leviable. As a result, it is requested that the aforementioned penalty demand be disputed in an appeal. There is no impact on the company's finances, operations, or other activities," it said. JSW Steel Ltd closed at Rs.1,013.00, up Rs.0.35, or 0.035% on the BSE.