GST Penalty of ₹64.47 Crore Imposed on JSW Steel for Mining Rights Payments

JSW Steel Ltd. has been fined ₹64.47 crore by the Office of the Commissioner of GST and Central Excise, Belagavi Division. The penalty concerns the alleged non-payment of GST under the Reverse Charge Mechanism (RCM) for mining rights payments made by the company in Karnataka between July 2017 and July 2019.

In a filing on December 10, JSW Steel stated that the penalty demand of ₹64,47,20,900 was issued under Section 74(1) of the CGST/KGST Act, 2017. The authorities claim that the company did not pay the required GST on upfront and monthly payments made to the government for mining rights. The company received the penalty order on December 9, 2024.

JSW Steel, however, insists that it has already paid the GST due, including the interest, and reported these payments in its monthly GST filings before receiving the show cause notice. The company emphasizes that it settled all tax liabilities under the reverse charge mechanism and disclosed them in the returns submitted on time.

Despite this, JSW Steel argues that the penalty is not justified. The company plans to appeal the decision, citing judicial precedents that support its position. It assures that the penalty will not affect its financials, operations, or any other business activities.

The company believes the penalty under Section 74(1) is unwarranted based on past legal rulings and is determined to challenge it through an appeal. JSW Steel continues to maintain compliance with GST regulations and will address the issue legally.