Tax Penalty of Rs 1.81 Crore Imposed on Vedanta Ltd’s Subsidiary, Hindustan Zinc

LI Network

Published on: October 10, 2023 at 12:54 IST

Vedanta Ltd announced on Monday that its subsidiary, Hindustan Zinc, has been subjected to a tax penalty of Rs 1.81 crore by tax authorities.

The company received this order on Sunday, October 8, as reported by Vedanta Ltd.

According to Vedanta Ltd, the penalty order was issued by the Assistant Commissioner, Div-A, Central GST Audit Circle, CGST, Udaipur, invoking Section 74(9) of the CGST Act 2017, along with corresponding provisions of the SGST Act, 2017, and Section 20 of IGST Act, 2017. This penalty pertains to the period from July 2017 to March 2018.

The order has been made on the basis of the contention that the company had wrongly availed input tax credit, Vedanta Ltd stated.

Despite this development, Vedanta Ltd expressed confidence in a favorable outcome at the appellate level and does not anticipate any significant financial impact on the company due to this order.

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