Vedanta Ltd Receives ₹141.36 Crore GST Demand Orders

Mining conglomerate Vedanta Ltd has received two tax demand orders from the Office of the Commissioner, Central Goods and Services Tax (CGST) & Central Excise, Rourkela Commissionerate.

The orders, both dated February 6, 2025, seek penalties totalling ₹141.36 crore, along with tax demands and applicable interest.

Breakdown of the Tax Demand

The first order imposes a penalty of ₹86.06 crore concerning the availing and utilisation of Input Tax Credit (ITC) during the 2017-18 financial year.

The second order seeks a penalty of ₹55.30 crore for availing ineligible ITC under Section 17(5) of the CGST Act, 2017, for the financial years between 2017-18 and 2019-20.

Company’s Response

Vedanta Ltd received both orders on February 7, 2025, and has stated its intention to appeal against them. The company remains optimistic about a favourable resolution.

“The company is hopeful of a favourable outcome thereof and does not expect the said Orders to have any material financial impact on the company,” Vedanta said in a statement.

Next Steps

Vedanta is expected to initiate the appeal process soon to challenge the tax demands and penalties levied by the tax authorities. The company has reassured stakeholders that it does not anticipate any significant financial repercussions from these orders.

Vedanta continues to engage with regulatory authorities to address the matter through legal channels while ensuring compliance with applicable laws and regulations.

Stocks Performance 

On February 10, 2025, Vedanta share price traded 3.57% lower at ₹439.30 at 9:28 AM (IST). Vedanta’s share price reached a 52-week high of ₹527 on December 16, 2024, and a 52-week low of ₹249.75 on March 13, 2024. As per BSE, the total traded volume for the stock stood at 0.94 lakh shares with a turnover of ₹4.14 crore.

At the current price, Vedanta shares are trading at a price-to-earnings (P/E) ratio of 10.33x, based on its trailing 12-month earnings per share (EPS) of ₹42.52, and a price-to-book (P/B) ratio of 2.28, according to exchange data.

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