Vedanta Iron and Steel subsidiary gets ₹12 crore GST demand notice

Legal
Steel

Blacklitt Research27 October 20262 min read

Vedanta Iron and Steel (NSE: VISL) said in a filing on 27 Oct 2026 that its subsidiary ESL Steel received a Demand-cum-Show Cause Notice from GST authorities on 26 Oct 2026, proposing recovery of ₹11.77 crore of GST and reversal of input tax credit, plus interest and penalty.

Key highlights

Proposed demand: ₹11.77 crore, plus applicable interest and penalty
Audit period covered: FY 2022-23 to FY 2023-24
Notice received: 26 Oct 2026 at around 04:25 pm
Issued by: Joint Commissioner, GST & Central Excise, Audit, Bhubaneswar

The notice in numbers

Item	Detail
Issued by	Joint Commissioner, GST & Central Excise, Audit, Bhubaneswar
Received by	ESL Steel Limited, a subsidiary of Vedanta Iron and Steel Limited
Received on	26 Oct 2026, around 04:25 pm
Audit period	FY 2022-23 to FY 2023-24
Total proposed recovery	₹11.77 crore, plus applicable interest and penalty
IGST	₹6.99 crore
CGST	₹2.39 crore
SGST	₹2.39 crore

What the notice proposes

The GST Department proposes recovery of GST and reversal of input tax credit aggregating to ₹11.77 crore. The amount is made up of IGST of ₹6.99 crore, CGST of ₹2.39 crore and SGST of ₹2.39 crore, along with applicable interest and penalty.

The alleged violation is short payment of GST and irregular or excess availment of input tax credit relating to GST audit observations for FY 2022-23 to FY 2023-24.

How ESL is responding

ESL is examining the notice and will take appropriate steps in accordance with applicable laws within the prescribed timelines. The company says ESL is also evaluating appropriate legal remedies.

How the amount compares with the company

The proposed recovery is about 0.1% of the company's market value of ₹10,928 crore at the 27 Oct 2026 close.

What the notice means for Vedanta Iron and Steel's shareholders

The filing discloses a proposed demand of ₹11.77 crore on a subsidiary, and the company says it envisages no material impact on its financial or operational activities. The filing does not give the interest or penalty amounts or a date for ESL's response.

Reference: Original filing (PDF)

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