Vedanta Faces Rs 3.48 Crore Penalty Over Input Tax Credit Issue

Vedanta, a prominent player in the mining industry, recently has been levied a penalty of Rs 3.48 crore in connection with a case pertaining to input tax credit utilization during the financial periods spanning from 2018-19 to 2019-20.

This hefty penalty, amounting to millions, was confirmed by the Office of the Additional Commissioner, GST & Central Excise Commissionerate, after a thorough examination of the company's tax affairs. The crux of the matter revolves around Vedanta's utilization of input tax credits during the specified timeframe.

The notice, signaling the imposition of the penalty, originated from the Office of the Additional Commissioner, GST and Central Excise Commissionerate, situated in Rourkela.

In response to this adverse ruling, Vedanta has expressed its intent to contest the decision by filing an appeal with the appropriate appellate authorities. Despite this setback, the company remains optimistic about the appeal process and anticipates a favorable resolution. Moreover, it reassures stakeholders that the financial repercussions of this penalty are not expected to be substantial.

Explaining the delay in the disclosure of this development, Vedanta clarified that it has been diligently investigating the reasons behind the penalty order and meticulously assessing its validity to ensure accurate communication with its stakeholders.