Hindustan Zinc, a subsidiary of Vedanta, has received a Rs 1,87,60,764 tax penalty order from the Coimbatore’s Commissioner of GST and Central Excise. The issue pertains to the utilization of Central Value Added Tax credits on the inputs purchased in the period between February 2010 and March 2011.
Hindustan Zinc told the bourses that the order was issued by the Commissioner of GST and Central Excise of Coimbatore on February 20 and was received by the company on May 21.
The company said that it is evaluating its next course of action in the matter. In the statement, it does not expect any material financial impact on the company from the order issued by the Coimbatore tax authorities. Additionally, the company added that it is hoping for a favourable outcome in the matter.
Vedanta’s Rs 146 crore tax penalty order
This is the second tax penalty order that the Vedanta group has received in a week’s time. Earlier on May 16, Vedanta received a tax penalty order for Rs 146 crore from Vishakhapatanam’s Principal Commissioner of Central Tax. This tax penalty order was related to the non-payment of the Special Additional Excise Duty pertaining to Videocon’s shares.
Hindustan Zinc Q4 performance
In the Q4 FY26, Hindustan Zinc reported a 47 percent YoY growth in its profit. The company posted a net profit of Rs 3003 crore in the quarter. Furthermore, the company posted a revenue of Rs 9087 crore in the quarter.
Hindustan Zinc also posted a 32 percent YoY EBITDA growth in the quarter. In the quarter ended in March, the company’s EBITDA stood at Rs 4820 crore. Additionally, EBTIDA margins also improved to 53 percent from 48.3 percent in the corresponding quarter the year before.
