JSW Steel has been served with a notice for allegedly transferring unutilised Input Tax Credit amounting to Rs 915.91 crore from its mining business in Odisha to the parent steel company and other units outside of the state. The notice from the Odisha’s Tax Department expects it to pay this amount with interest of 24 % on it.
It claims JSW Steel’ Barbil unit which runs four mines currently – Nuagaon, Jajang, Narayanposhi and Ganua — paid SGST and CGST of Rs 57949,88 each for the period April to June 2021 on reverse charge mechanism for licensing services for rights to exploration, evacuation against Royalty, DMF, NMET etc.
Instead of using the entire amount to offset liability against output tax in Odisha, the company has transferred a certain amount, or Rs 915.91 crore to JSW Steel, Maharashtra which in turn has distributed this amount “wrongfully and illegally” in contravention of the provisions of the CGST/ SGST/ IGST Act, to other units located in states outside Odisha.
The company has been issued a show cause notice to explain and justify the “discrepancies” or pay back the amount with interest of 24% per annum from the date of claim.
For official notice, Click here
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