
Hindustan Zinc Limited (HZL) disclosed today that it has received an order from the Office of the Deputy Commissioner of State Tax, Udaipur, confirming penalties of Rs 41.1 crore and Rs 51.45 crore for the financial years 2018-19 and 2019-20, respectively. The issue stems from a dispute over Input Tax Credit (ITC) under Section 17(5) of the GST Act.
Key Details:
- Order Details: Orders (ZD080125021255T for FY 2018-19 and ZD080125021336R for FY 2019-20) were issued on January 13, 2025, and received by HZL the same day.
- Total Penalty: Rs 92.55 crore across the two fiscal years, inclusive of tax demands and applicable interest.
- Response: HZL plans to file an appeal before the Appellate Authority within the prescribed timeline under GST laws, expressing optimism about a favorable resolution.
Financial Impact:
The company has stated that it does not anticipate a material financial impact from this issue, citing confidence in the merits of its case.
This development has no immediate bearing on HZL’s operational performance but underscores ongoing regulatory scrutiny in the mining and resources sector.