• Notification Date: 16-12-2024
• Notification No: N/A

Vedanta Hit with Rs 1.71 Crore Penalty in GST Dispute, Plans to Appeal

Vedanta Ltd has been fined with Rs 1.71 crore in a dispute of GST related to the financial year 2017-18. The penalty comes with a demand for tax and interest due to the company’s handling of cenvat credit and transitional credit under the new Goods and Services Tax (GST) rules. The orders were issued by the GST office in Jharsuguda and received by Vedanta on December 9, 2024.

The issue centers on the way Vedanta carried forward its cenvat credit during the transition to the system of GST in 2017-18. The company plans to challenge the tax orders and penalty with the authorities who believe that it will not have a notable financial influence on its business.

In its current earnings report for the second quarter of FY25, Vedanta reported a drop of 3.4% in revenue, which fell to Rs 37,634 crore, down from Rs 38,945 crore in the same period last year. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) also dropped by 14% to Rs 9,828 crore. Despite the decline in revenue, Vedanta still made a net profit of Rs 5,603 crore. Its total debt rose by 5.6% to Rs 78,654 crore, mainly because of increased borrowings from its subsidiaries, including Bharat Aluminium and Hindustan Zinc.

Looking to the future, Vedanta is still focusing on huge investments, including a project of Rs 1 trillion in Odisha. This will involve building a large alumina refinery and an aluminium plant that will produce environmentally friendly, "green" aluminium by using sources of renewable energy.