JSW Steel To Challenge Karnataka Tax Authority's Rs 64-Crore Demand Notice
The company has allegedly not paid the GST under the reverse charge mechanism on upfront payments, monthly payments to the government for assignment of mining rights from July 2017 to July 2019.
JSW Steel Ltd. has received a demand notice of Rs 64 crore from the commissioner of GST and central excise in Karnataka's Belagavi division, according to an exchange filing.
The company has allegedly not paid goods and services tax under the reverse charge mechanism on upfront payments and monthly payments made to the government for assignment of mining rights from July 2017 to July 2019 in Karnataka, according to the order.
JSW Steel said it had "already discharged 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".
On the basis of available judicial precedents, the Mumbai-headquartered company "believes that the penalty under Section 74(1) is not leviable", adding that it would challenge "the aforesaid demand of penalty" in an appeal.
The steel maker said the development would not result in any impact on the financials, operations or its other activities.
For the second quarter of the ongoing fiscal, the steel producer had reported a 85% fall in the consolidated profit to Rs 404 crore, compared to Rs 2,774 crore in the same period last year.
Shares of JSW Steel closed 0.10% higher at Rs 1,012.95 apiece on the NSE, compared to a 0.04% decline in the benchmark Nifty.
