MOIL Limited has successfully overturned a significant GST demand related to the RCM payment on MPGATSVA paid to the Mining Department of Madhya Pradesh. The Appellate Authority set aside the original order dated 13.12.2024, quashing the entire demand of ₹2,028.93 lakhs, plus associated penalty and interest estimated between ₹1,500-1,800 lakhs. This results in zero surviving liability for the company concerning this dispute as of January 29, 2026.
Resolution of Major Tax Litigation
MOIL Limited announced today, February 21, 2026, that it has received a favorable order from the Commissioner (Appeals), CGST & Central Excise, Bhopal, concerning a long-standing tax dispute. The appeal, filed against an Order-in-Original confirming a GST demand, has been allowed by the appellate authority vide an Order-in-Appeal dated January 29, 2026.
Financial Relief and Liability Status
This ruling directly impacts the demand related to GST under the Reverse Charge Mechanism (RCM) on MPGATSVA paid to the Mining Department of Madhya Pradesh. The original Order-in-Original, dated December 13, 2024, had confirmed a GST demand of ₹2,028.93 lakhs, which included an equal amount in penalty. Crucially, the current appeal judgment has set aside the entire original order. This action quashes the primary demand along with associated penalty and interest estimated to be between ₹1,500-1,800 lakhs. The total risk exposure (Tax + Penalty + Interest) previously estimated at ₹55-58 Crore has been eliminated, resulting in no surviving liability on this date, subject to potential future appeals by the Department.
Background of the Dispute
The initial dispute centered on the GST demand confirmation made against MOIL. The Company had previously disclosed the filing of an appeal before the Commissioner (Appeals), CGST & Central Excise, Bhopal, following the adverse initial ruling. The subsequent decision in favor of MOIL marks a significant positive resolution to this material litigation.
Source: BSE
