Hindustan Zinc Limited (HZL), a subsidiary of Vedanta, has received a penalty order from the Assistant Commissioner of Central Goods and Service Tax, Udaipur. The penalty amounts to ₹70,45,448, along with applicable tax demand and interest. The issue pertains to disallowance of Input Tax Credit on input services from April 2018 to March 2023. HZL intends to appeal the order.
Details of the Penalty
Hindustan Zinc Limited (HZL) has received an order from the Office of the Assistant Commissioner of the Central Goods and Service Tax – Udaipur regarding a penalty. The order, dated September 30, 2025, was received by the company on October 11, 2025.
Financial Impact and Company Response
The confirmed penalty amounts to ₹70,45,448, in addition to the applicable tax demand and interest. This relates to the disallowance of Input Tax Credit of input services between April 2018 and March 2023.
HZL intends to file an appeal against the order with the appropriate Appellate Authority. The company anticipates a favorable outcome and does not expect this order to have a material adverse financial impact.
Source: BSE
