Jindal Steel faces GST demand over alleged excess input tax credit

Jindal Steel & Power Limited received a GST demand order from the joint commissioner, CGST & Central Excise, Rourkela Commissionerate. The order, dated December 24, 2025, alleges excess availment of GST input tax credit (ITC) based on an audit for the financial years 2021-22 and 2022-23.

The demand order specifies an amount of demand raised of INR 2,15,34,020, along with applicable interest, and a penalty of INR 21,53,420. This allegation concerns the contravention of Rule 16 (4) of CGST Rules' 2017.

Jindal Steel is currently evaluating the demand order and plans to take necessary action, including filing an appeal. The company stated that the amounts involved are not considered material and are not expected to impact its financials, operations, or other activities.