Hindustan Zinc Slapped with ₹2.99 Crore Penalty by CGST Commissionerate, Plans to Appeal

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

The company, a major player in the zinc mining and smelting industry, received the penalty notice recently and is preparing to challenge the decision. Hindustan Zinc officials confirmed that they intend to file an appeal against the imposed penalty, arguing discrepancies in the tax assessments for the fiscal year in question.

This development comes at a time when the company is focusing on expanding its operations and maintaining compliance with tax regulations. The appeal process is expected to shed light on the intricacies of the Reverse Charge Mechanism and its application in the context of large-scale industrial operations.

The case highlights ongoing challenges faced by corporations in navigating the complexities of India's Goods and Services Tax (GST) regime, particularly concerning the reverse charge on services. Industry watchers are keen to see how this appeal progresses, given its implications for tax compliance and corporate governance in the mining sector.