Hindustan Zinc Hit With ₹92.55 Crore GST Penalty in Rajasthan

Vedanta Group’s Hindustan Zinc Ltd (HZL) has found itself in a tax dispute, with penalties amounting to ₹92.55 crore levied by the Deputy Commissioner of State Tax, Udaipur. The case revolves around input tax credit claims under Section 17(5) of the GST law for two financial years 2018-19 and 2019-20.

What Happened?

The penalties are divided into ₹41.11 crore for FY 2018-19 and ₹51.45 crore for FY 2019-20. Orders dated January 13, 2025, were received by the company on the same day. The orders also include a tax demand and applicable interest for the disputed years.

HZL’s Take

Hindustan Zinc has decided to appeal the orders. The company plans to file its challenge with the Appellate Authority within the timeframe laid out under GST rules. According to their exchange filing, HZL doesn’t anticipate this issue having any major impact on its financial health or operations.

Market Performance

Despite the penalties and ongoing tax dispute, HZL’s shares performed well on January 14, 2025, closing at ₹436.25, a 3.98% jump. Today, Hindustan Zinc Ltd shares were trading at ₹441.90 as of 1:58 PM, showing a 1.34% intraday gain, while declining 33.02% over the past six months and rising 37.34% over the past year.

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