Hindustan Zinc Limited (HZL) faces a penalty of ₹66.43 lakh following an order from the Joint Commissioner, CT & GST Circle, Jharsuguda. The penalty relates to the reversal of input tax credit on exempt supplies. HZL intends to appeal the order and does not expect a material financial impact.
Penalty Details
Hindustan Zinc Limited (HZL) has received an order from the Joint Commissioner, CT & GST Circle, Jharsuguda, imposing a penalty of ₹66,43,249 along with applicable tax and interest. The order was received on December 29, 2025.
Reason for Penalty
The penalty is related to the reversal of Input Tax Credit (ITC) in proportion to the exempt supplies, as per sections 17(2) and 17(3) of the CGST Act, 2017.
Company Response
HZL intends to appeal against this order with the relevant appellate authorities. The company anticipates a favorable outcome and does not foresee any material financial impact as a result of this order.
Vedanta Limited Intimation
Vedanta Limited (VEDL), the promoter and holding company of Hindustan Zinc, has also made a disclosure concerning this penalty. This was intimated to the stock exchanges on December 30, 2025.
Source: BSE
