ONGC Receives ₹22 Crore GST Demand, Plans to Appeal

19 Mar 2025 , 12:36 AM

Oil and Natural Gas Corporation Ltd (ONGC) has received a GST demand order of ₹22 crore from the Joint Commissioner, State Tax, Circle C, Jodhpur. The said demand relates to the period from April 01, 2020 to May 14, 2020, under an Order dated 25th February 2025, communicated to ONGC through email dated 17th March 2025.

The order passed under Sections 73 and 50 of the Central GST (CGST) Act, 2017 is as follows:

• ₹11.31 crore as GST recovery
• ₹9.50 crore as interest
• ₹1.13 crore as a penalty

The controversy pertains to the alleged non-payment of goods and services tax (GST) on royalty for joint venture (JV) partners Vedanta as well as CEHL. Each of the companies has a participating interest of 35% in the unincorporated JV for the Pre-NELP block RJ-ON-90/1.

ONGC holds a 30% stake in the JV, and has been paying GST under protest for its share but says that:

• Not subject to GST for royalty payments.
• It is not liable to pay GST, on behalf of its JV partners.
• The company, which is appealing the demand order, said the matter is already under litigation.

ONGC stated that the tax order will not cause any material financial or operational impact to the company, given the scale of its operations. The order will be reviewed in detail and all appropriate actions will be pursued before the competent authority, the company said.