Hindustan Zinc Faces Rs 26-Cr GST Demand Notice

By: Admin | August 22, 2024 | Categories: GST Recent News | 4 Min Read

Hindustan Zinc, a leading producer of zinc, lead, and silver, has received a Goods and Services Tax (GST) demand notice totaling Rs 26.12 crore from the Office of the Commissioner of Central Excise & CGST Commissionerate. This notice pertains to the input tax credit availed and reported by the company in GSTR-3B and GSTR-9 during the financial years 2019-20 and 2020-21.

The GST authorities have imposed a penalty amounting to Rs 26,12,05,495, in addition to the tax demand and applicable interest. Hindustan Zinc plans to file an appeal before the Appellate Authority within the prescribed time frame under the GST law. The company remains optimistic about a favorable outcome and does not anticipate any material financial impact from the order.

In other news, Hindustan Zinc’s board recently approved a second interim dividend of Rs 19 per equity share for the financial year 2024-25, amounting to Rs 8,028.11 crore. The record date for the payment of the dividend is set for Wednesday, August 28, 2024.

Hindustan Zinc, part of the Vedanta Group, continues to perform strongly. As of June 2024, Vedanta held a 64.92% stake in the company. The company’s consolidated net profit saw a 19.4% increase, reaching Rs 2,345 crore during Q1 FY25, compared to Rs 1,964 crore in Q1 FY24. Additionally, revenue from operations surged 12% year-on-year to Rs 8,130 crore in Q1 FY25.

Despite the demand notice, the company’s stock only saw a slight dip, shedding 0.13% to Rs 511.65 on the BSE.


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