Vedanta Limited Slapped with Hefty ₹2 Crores Penalty by GST Authority

Vedanta Limited has unveiled that it is facing significant penalties imposed by the Commissioner (Appeals), CGST, Central Excise & Customs, Bhubaneswar, totalling ₹ 97,44,894 and ₹ 1,21,26,290 for its non-compliance with specific regulations in FY 2019-20 and transitional credit issues in FY 2017-18, respectively.

According to the officials, the penalties are related to Vedanta's alleged misuse of reverse charge mechanism and transitional credits. The company has announced that it will file formal appeals against these orders.

As a result of the penalty, Vedanta Limited is expected to make significant outlays to settle the dues, which may impact its financial performance in the near future. The move by the GST authority highlights the importance of regulatory compliance for large corporations operating in India's multi-million-dollar markets.

The matter has now been taken up by Vedanta and it remains to be seen how the company will navigate this challenging situation.