Steelmaker JSW Steel Ltd cited a penalty of Rs 64.47 crore that has been levied by the office of the commissioner of GST and Central Excise, Belagavi Division.
The penalty is pertinent to the alleged non-payment of GST under the Reverse Charge Mechanism for mining rights payments in Karnataka in the period of July 2017 to July 2019.
This has been directed to the above-mentioned subject order on 05.12.2024 received to JSW Steel Ltd dated 09.12.2024, from the Commissioner of GST and Central Excise, Belagavi Division, where in demand of penalty to Rs 64,47,20,900 has been imposed u/s 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 cited in a regulatory filing.
As per JSW Steel it has earlier filed the applicable GST obligation along with the interest and reported such in its monthly GST filings before the issuance of the show cause notice. The company has released the precise tax obligation under reverse charge including with applicable interest and it was released in the monthly returns furnished via the company before the issuance of the SCN.
The company directing the judicial precedents assumes the penalty is unwarranted and has the intention to challenge the demand via a plea. The company on the ground of the judicial available precedents assumes that the penalty u/s 74(1) is not liable to get imposed. Consequently, the above-said penalty demand is asked to be contested in appeal. No impact on the financial operations or other activities of the company would be there.
