Mumbai, February 5, 2025 – JSW Steel Limited (NSE: JSWSTEEL, BSE: 500228) has disclosed that it has received a Goods and Services Tax (GST) demand order from the Office of the Principal Commissioner of Central Tax, Bengaluru East Commissionerate. The order, dated February 1, 2025, requires the company to pay ₹14,67,79,492 in GST, along with an equal amount in penalty and applicable interest.
Key Details of the Demand Order
- The GST demand covers the period FY 2017-18 to FY 2022-23.
- The Department alleges non-payment of GST on interest charges recoverable from a customer based on certain preliminary documentation.
- JSW Steel has disputed the claim, stating that no interest was charged to the customer and there were no offsetting transactions requiring GST.
Company's Response and Next Steps
- JSW Steel intends to challenge the order and take appropriate legal steps, including filing an appeal.
- The company, based on legal advice, considers the demand unsustainable and not based on actual facts.
- The company has assured stakeholders that there will be no financial, operational, or strategic impact due to this order.
Regulatory Compliance and Disclosure
- The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
- Delay in disclosure was attributed to a delay in internal communication to the compliance team.