Hindustan Zinc Limited (HZL), a subsidiary of Vedanta, has received a penalty order from the Assistant Commissioner, Central Goods & Service Tax, Udaipur. The penalty amounts to ₹19.59 lakhs, plus applicable interest, and relates to ineligible Input Tax Credit for FY 2021-22. HZL intends to appeal the order. The Company does not expect the said Order to have any material financial impact.
Penalty for Ineligible Tax Credit
Hindustan Zinc Limited (HZL) has been issued a penalty order by the Office of the Assistant Commissioner, Central Goods & Service Tax in Udaipur. The order, received on December 5, 2025, concerns ineligible Input Tax Credit under Section 16 of the CGST Act, 2017.
Financial Details
The confirmed penalty amounts to ₹19,59,144. This figure excludes tax demand and applicable interest also levied in the order.
Company Response
HZL intends to file an appeal against this order. The company is hopeful for a favourable outcome and does not anticipate any substantial financial repercussions as a result of the order.
Source: BSE