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Vedanta faces Rs. 27.97 crore GST Penalty Order

Last updated: 18 April 2024

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.

Vedanta faces Rs. 27.97 crore GST Penalty Order

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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