Vedanta Limited Faces INR 29.12 Crore Penalty in GST Dispute

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Mumbai, February 5, 2025 – Vedanta Limited (NSE: VEDL, BSE: 500295) has received a penalty order from the Office of the Commissioner, CGST & Central Excise, Jodhpur, in relation to an oil & gas block where it operates. The company has been directed to pay a penalty of INR 29.12 crore along with GST demand and applicable interest.

Key Highlights:

Regulatory Action:The Additional Commissioner, CGST & Central Excise, Jodhpur, has confirmed the penalty due to multiple tax-related issues, including:
- Availment of Input Tax Credit (ITC),
- Reversal of ITC on exempt supplies,
- GST payment on Corporate Guarantee.
Company’s Share of Penalty: Vedanta’s portion of the penalty amounts to INR 27.27 crore.
Date of Order: The penalty order (No. ADC/MS/JDR/GST/71/2024-25) was issued on February 3, 2025, and received by Vedanta on February 4, 2025, through the GST portal at 12:40 PM.

Financial and Operational Impact

Vedanta has not disclosed an immediate financial impact but has stated that it is evaluating the next course of action. The company may contest the penalty or seek legal remedies to mitigate the financial burden.

Outlook & Investor Sentiment

The penalty adds to the regulatory challenges for Vedanta, which is already navigating complex tax and compliance environments in India. Investors will closely monitor how the company addresses this issue and whether it impacts Vedanta’s financials in the upcoming quarters.