Hindustan Zinc Fined ₹36 Crore Under GST Act in Rajasthan

Hindustan Zinc Limited (HZL), headquartered in the historic city of Udaipur, Rajasthan, stands as India’s largest and the world’s second-largest integrated producer of zinc, lead, and silver. Founded in 1966 as a public sector undertaking, the company underwent privatisation in 2002. 

Hindustan Zinc Received a Penalty of ₹35.35 Crore 

On January 9, 2025, Hindustan Zinc Ltd., a prominent arm of the Vedanta Group, revealed that the Office of the Deputy Commissioner of State Tax in Udaipur had imposed a penalty amounting to an imposing ₹35.35 crore. The revelation was made through a regulatory filing with the stock exchanges, bringing attention to a significant tax-related development.

According to the official communication, the company has received an order from the Office of the Commissioner of State Tax, Udaipur, confirming the penalty of ₹35.35 crore. This penalty is accompanied by a tax demand and applicable interest, stemming from a dispute regarding Input Tax Credit (ITC) under the Goods and Services Tax (GST) Act. The contention pertains to transactions from the financial year 2017-18.

Hindustan Zinc is Going to appeal the Penalty

Despite the substantial penalty, Hindustan Zinc has expressed its confidence in navigating the situation effectively. The company stated that it intends to appeal against the order before the Appellate Authority within the stipulated timeframe as prescribed by the GST law. HZL is optimistic about a favourable resolution, asserting that it does not anticipate any material financial impact on its operations as a result of the order.

“Considering the merits of the case, the company intends to file an appeal before the Appellate Authority within the time limit prescribed under the GST Law. The company is hopeful of a favourable outcome thereof and does not expect the said order to have any material financial impact on the company,” Hindustan Zinc affirmed in its regulatory filing.

Hindustan Zinc’s Share Price Performance 

Hindustan Zinc Ltd’s share price was traded at ₹435.65 per share at 1:09 PM.

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