Vedanta Group company Hindustan Zinc Ltd on Thursday (January 9) disclosed a penalty of ₹35.35 crore imposed by the Office of the Deputy Commissioner of State Tax, Udaipur.
“The company has received an Order from the Office of the Commissioner of State Tax, Udaipur confirming a penalty of ₹35,35,16,226 along with Tax demand and applicable Interest. The issue pertains to dispute on Input Tax Credit under Section 17(5) during FY 2017-18,” Hindustan Zinc said in a regulatory filing.
The penalty, along with tax demand and applicable interest, relates to a dispute over input tax credit under Section 17(5) of the GST Act for FY 2017-18. HZL intimated the development to the stock exchanges on Thursday, January 9.
Despite the penalty, HZL maintained that it does not expect any material financial impact from the order. The company intends to file an appeal before the Appellate Authority within the prescribed time limit under GST Act, expressing confidence in a favourable outcome.
“Considering the merits of the case, the company intends to file an appeal before the Appellate Authority within time-limit prescribed under the GST Law. The Company is hopeful of a favourable outcome thereof and does not expect the said Order to have any material financial impact on the company,” Hindustan Zinc added.
