Subsidiary receives GST demand-cum-show cause notice over alleged IGST short payment of ₹ 2,76,135.61
Subsidiary ESL Steel became aware of a GST Demand-cum-Show Cause Notice proposing recovery of IGST of ₹ 2,76,135.61 for alleged short payment under RCM for FY 2022-23, plus interest and penalty.
By ScoutQuest · · 2 min read
- Proposed IGST Recovery
- ₹ 2,76,135.61
- Period
- FY 2022-23
- Notice Awareness Date
- October 14, 2026
What the update says
ESL Steel Limited, a subsidiary of the company, became aware of a Demand-cum-Show Cause Notice issued by the Office of the Superintendent, Central Tax, GST & Central Excise, Lathikata Range, Rourkela. The company states it became aware of the notice upon accessing it on the Goods and Services Tax portal on October 14, 2026.
The amount in the notice
- The Department has proposed recovery of IGST amounting to ₹ 2,76,135.61 in relation to alleged short payment of IGST liability under Reverse Charge Mechanism (RCM) for FY 2022-23, along with applicable interest and penalty.
- The alleged short payment is stated to arise out of differences between the liabilities disclosed in GSTR-3B and GSTR-2B.
Some plain-English context
- IGST is the integrated GST charged on inter-state supplies and on certain imports.
- Under the Reverse Charge Mechanism, the recipient of a good or service, rather than the supplier, is liable to pay the tax to the government.
- GSTR-3B is the summary return in which a taxpayer declares and pays tax; GSTR-2B is an auto-generated statement of the input tax credit available to the taxpayer. Differences between the two are a common trigger for departmental queries.
What the company says
- The notice requires ESL to submit its response within the prescribed timeline.
- ESL is examining the said notice and shall take appropriate steps in accordance with applicable laws within the prescribed timelines.
- The company does not envisage any significant financial and operational impact on the company.
- The annexure states that ESL is evaluating appropriate legal remedies and shall take necessary actions in accordance with applicable laws, and that the company envisages no material impact on the financial, operations and/or other activities due to the said intimation.
How this may be read
This is a subsidiary-level GST notice, and it is at the show-cause stage — the Department has proposed a recovery and ESL is yet to submit its response. The company's stated position is that it does not envisage a significant or material financial and operational impact. The notice also carries applicable interest and penalty, the amounts of which are not quantified.
Also from Vedanta Iron And Steel
Vedanta Iron & Steel schedules Q2/H1 FY27 earnings conference call for October 27, 2026, 5:00–5:30 PM IST
22 Oct 2026
Board meeting on October 27, 2026 to consider Q2 and half year unaudited results
22 Oct 2026
Subsidiary gets GST demand-cum-show cause notice for ₹ 7,77,094/- over reverse charge on DMF, NMET
15 Oct 2026
More numbers
- Proposed IGST recovery in the GST notice₹ 2,76,135.61
Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.