Mumbai, February 2, 2025 – Zee Entertainment Enterprises Limited (NSE: ZEEL, BSE: 505537) has disclosed that it received an order from the Commercial Tax Officer, Group IV, Chengalpattu Intelligence Division, Tamil Nadu, related to discrepancies in its Input Tax Credit (ITC) claims.
Key Regulatory Disclosure Details
The order, issued under Section 74 of the TNGST/CGST/IGST Act, 2017, determines that Zee Entertainment is liable for:- Tax Payable (Including Penalty): INR 0.40 million due to ineligible ITC claimed.
- Interest & Discrepancies: The issue stems from excess availment of ITC amounting to INR 16.56 million for the period July 2017 to March 2018.
- Violation Cited: GST demand raised due to excess ITC claimed in GSTR-3B filings.
Company's Response and Legal Recourse
Despite the ruling, Zee Entertainment maintains that its case has merits and intends to file an appeal within three months before the adjudicating authority under the TNGST Act. The company has assured stakeholders that there is no material financial or operational impact expected from this order.Market Implications
While the tax liability of INR 0.40 million is relatively small, the case highlights ongoing regulatory scrutiny of ITC claims under GST laws. Investors will be monitoring the appeal process and any potential precedents this ruling may set for similar cases.This disclosure aligns with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency for market participants.