State-owned Oil and Natural Gas Corporation Ltd (ONGC) on Monday (March 17) said it has received a Goods and Services Tax (GST) demand order amounting to ₹22 crore from the Joint Commissioner, State Tax, Circle C, Jodhpur, for the period between April 1, 2020, and May 14, 2020.
“An Order, dated 25.02.2025 has been received through email today i.e.17.03.2025 from the Office of Joint Commissioner, State Tax, Circle C, Jodhpur for the Period of 01.04.2020 to 14.05.2020,” ONGC said in a regulatory filing.
The order, issued under Sections 73 and 50 of the CGST Act, 2017, includes a GST recovery demand of ₹11.31 crore, interest of ₹9.50 crore, and a penalty of ₹1.13 crore. The dispute pertains to the alleged non-payment of GST on royalty for other joint venture (JV) partners, Vedanta and CEHL, which hold a 35% participating interest each in the unincorporated JV for the Pre-NELP block RJ-ON-90/1.
ONGC, which has been paying GST under protest for its own 30% share, maintains that GST is not applicable on royalty and that it is not liable to pay the tax on behalf of its JV partners. The company stated that the issue is already under litigation and that it will review the order and file an appeal.
“The company is of the view that: (a) GST is not leviable on Royalty and, (b) ONGC is not liable to pay GST on Royalty for other JV partner’s share as per the provision of PSC and GST Act. It is pertinent to mention that the question of leviability and shareability involved in this issue is presently under litigation,” the company said.
ONGC stated that the order will not have a significant financial or operational impact given the scale of its operations. “No Significant impact in view of size and scale of operations of the Company. The Company shall review the order and file an appeal before the appropriate forum,” it added.
