Hindustan Zinc Slapped with ₹2.99 Crore Penalty and Tax Demand; Company Plans to Appeal

Udaipur, Rajasthan - Hindustan Zinc Limited, a subsidiary of the Vedanta Group, has been hit with a hefty penalty of ₹2,99,37,101 by the Office of the Commissioner of Central Excise & CGST Commissionerate. The penalty pertains to the non-compliance with tax obligations under the Reverse Charge Mechanism for inward supplies during the financial year 2017-18.

The company, known for its zinc, lead, and silver production, has announced its intention to challenge the penalty through an appeal. This move comes as part of Hindustan Zinc's strategy to address the tax demand and the associated penalty.

"The company is reviewing the order and will take necessary legal steps to contest the penalty," said a spokesperson from Hindustan Zinc. This development marks another instance where businesses are grappling with GST regulations and compliance issues.

The case highlights the ongoing complexities within India's tax framework, particularly concerning the Reverse Charge Mechanism, which requires the recipient of goods or services to pay the tax directly to the government.

Hindustan Zinc Limited, a major player in the mining and metal industry, continues to focus on its operational efficiency and compliance while navigating these fiscal challenges.