(Fast Mail News) - Revenue Departmentof Odisha dealing with GST matters has found gross irregularities by JSW Steel Limited bearing GST No.21AAACJ4323N2ZR, Barbil with estimated revenue loss of over Rs.9159 Cr. to the State Exchequers during the period from April 21 to June 21.
JSW Steel Ltd has been issued show cause notice to explain the discrepancies and asked the company to produce all the evidence. If the above discrepancies is found to be correct , JSW Steel Ltd would be required to pay an additional amount with interest at 24% per annum.
The Govt. of Odisha has granted 4 iron ore mining, namely Nuagaon iron ,Jajang ,Narayanposhi and Ganua to JSW Steel Limited. As per the OGST/ CGST Act, the company is liable to pay GST on royalty, DMF, NMET and premium at the rate of 18% and on sale of ore at the rate of 5%.JSW Steel Ltd has paid SGST amounting to Rs.57949,88 and CGST amounting to Rs.57949,88 during the period from April 21 to June 21 on reverse charge mechanism on the basis of licensing services for rights to use minerals including exploration and evaluation (falling under the Head 9973) against royalty, DMF, NPV etc.
However, JSW allegedly utilized a portion of the same for offsetting liability against output tax payable in Maharashtra. Examination of part B of GSTR-2A, GSTR-I and GSTR 3B filed by the company and GSTR-6 filed by M/s JSW Steel Ltd (ISD), GSTIN 27AAACJ4323N2ZR reveals that during the period from April’21 to June,21 M/s JSW Steel Ltd , Barbil has utilized the entire tax paid on RCM against the output tax liability by illegally transferring the unutilized ITC amounting toRs.915,91,79,745/- to M/s JSW Steel Ltd (ISD) GSTIN27AAACJ4323N2ZF, located in the State of Maharashtra.
The Government has thus observed that M/s JSW Steel Ltd (ISD) OSTIN27AAACH4323N2ZF, Maharashtra is in contravention of the provisions of the CGST/ SGST/ IGST Act by transferring the ITC amount wrongly and illegally to other units located outside the State of Odisha.