In a recent development, mining conglomerate Vedanta Ltd disclosed on Tuesday, April 16, that it has been slapped with a hefty Goods and Services Tax (GST) penalty amounting to ₹27.97 crore. The penalty is attributed to a lingering dispute concerning Input Tax Credit reconciliations spanning from the fiscal years 2018-19 to 2020-21.
The penalty order, confirmed by the Office of the Additional Commissioner, GST & Central Excise Commissionerate, Rourkela, includes not only the penalty but also tax demand and applicable interest, as detailed in a filing with the stock exchange.
Reacting promptly to the development, Vedanta expressed its intention to contest the order with the Appellate Authorities, seeking a favorable resolution to the dispute. Despite the setback, the company reassured stakeholders that it does not foresee any significant financial repercussions stemming from the penalty.
In a statement addressing the matter, Vedanta conveyed, "The company intends to file an appeal against the said Order with the Appellate Authorities. The company is hopeful of a favorable outcome thereof and does not expect the said Order to have any material financial impact on the company."
In trading activities, shares of Vedanta Ltd closed at ₹378.00, marking an increase of ₹7.45, or 2.01%, on the Bombay Stock Exchange (BSE).
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