JSW Steel’s stock fell as much as 4% on Friday after CNBC-TV18 reported that the Mumbai GST zone had discovered Rs 265 crore in tax evasion by the steelmaker.
According to sources, the GST authorities claim that JSW Steel improperly claimed an input tax credit for compensatory cess on coking coal used for captive consumption. The GST authorities claimed the credit of unutilized cess as a refund, and it is understood that JSW Steel has reimbursed the GST authorities roughly Rs 261.7 crore in several tranches. JSW Steel has been contacted by CNBC-TV18 for a formal response, which is pending. JSW Steel shares were down 3.2 percent at Rs 659 on the BSE at 10:44 a.m. The stock has been on the down for the past two days, falling 4% in that time. The stock has returned 70% of its initial investment. Year-to-date, it has increased by 82 percent in the last year. Other metal company shares have also risen sharply as a result of commodity inflation, which is expected to improve realisations and earnings. Nifty Metal is up 67 percent year to date and 86 percent in the last year. Despite the recent bull market in metal stocks, fundamental market analysts are bullish on the sector, while technical analysts feel certain businesses look attractive on the charts.