Hindustan Zinc Limited has received an order imposing a penalty of ₹19.59 lakh, along with a tax demand and applicable interest, related to ineligible Input Tax Credit for FY 2021-22. The company intends to appeal the order before the Appellate Authority and expects a favorable outcome, anticipating no material financial impact.
Penalty Imposed
Hindustan Zinc Limited has received an order from the Office of the Assistant Commissioner, Central Goods & Service Tax Division-Udaipur, confirming a penalty of ₹19,59,144. This is in addition to a tax demand and applicable interest. The order was received on December 5, 2025, at 7:56 PM.
Details of the Issue
The issue pertains to ineligible Input Tax Credit as per Section 16 of the CGST Act, 2017, for the fiscal year 2021-22.
Company’s Response
Considering the merits of the case, Hindustan Zinc intends to file an appeal before the Appellate Authority within the prescribed time limit. The company is optimistic about a favorable outcome and does not anticipate any material financial impact resulting from this order.
Source: BSE