Mumbai, February 28, 2025 – Vedanta Limited (NSE: VEDL, BSE: 500295) has disclosed that its subsidiary, Bharat Aluminium Company Limited (BALCO), has received an order from the Office of the Joint Commissioner of State Tax, Bilaspur Division-2, Chhattisgarh, confirming a penalty of INR 22,38,470, along with tax demand and applicable interest. The penalty relates to the reversal of Input Tax Credit (ITC) for inputs and input services used for exempt and non-GST supplies during FY 2020-21.
Key Highlights of the Order
- Issuing Authority: Office of the Joint Commissioner of State Tax, Bilaspur Division-2, Chhattisgarh.
- Penalty Amount: INR 22,38,470, plus applicable interest.
- Reason for Penalty: Reversal of ITC for inputs/input services used for non-GST and exempt supplies.
- Order Number & Date: Order No. ZD220225030657O, dated February 27, 2025, received by BALCO on the same day at 8:00 PM IST.
Company’s Response & Financial Impact
Vedanta and BALCO plan to file an appeal before the Appellate Authority within the timeframe prescribed under the GST Law. The company has stated that, based on the merits of the case, it is hopeful for a favorable outcome and does not expect any material financial impact from this penalty.This disclosure aligns with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency regarding regulatory matters.
Market Outlook
Investors and stakeholders will closely monitor the outcome of BALCO’s appeal, as well as any further regulatory scrutiny on Vedanta's subsidiaries regarding tax compliance.For further updates, stay tuned.