JSW Steel shares drop 4% After Tax Evasion News
Shares of JSW Steel dropped as much as 4 percent on Friday after CNBC-TV18 reported that the Mumbai GST zone has detected tax evasion of Rs 265 crore by the steel maker.
GST authorities claim that JSW Steel had wrongly availed input tax credit of compensation cess on coking coal used for captive consumption, said sources.The credit of unutilised cess was consequently claimed as refund by GST authorities and it is learnt that JSW Steel has repaid around Rs 261.7 crore in various tranches back to the GST authorities.CNBC-TV18 has written to JSW Steel for formal comment and is awaiting its response. At 10:44 am, JSW Steel shares were down 3.2 percent, trading at Rs 659 on the BSE. The stock has been losing for the last two days and has fallen 4 percent during the period.The stock has generated 70 percent returns Year-To-Date while in the past one year, it has gained 82 percent.Shares of other metal companies have also seen a steep rally on the back of commodity inflation which is seen boosting realisations and earnings of these firms.Nifty Metal has risen 67 percent YTD and rose 86 percent in the past one year.Despite the stellar run in metal stocks lately, fundamental market experts are upbeat on metal stocks while technical analysts also believe certain companies appear good on charts.
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