Vedanta Hit with ₹1.87 Crore GST Penalty Over CENVAT Credit Dispute
By Ankur Chandra | Updated at: May 31, 2025 07:30 PM IST
Mumbai | May 21, 2025 — Vedanta Limited (NSE: VEDL, BSE: 500295) has disclosed the receipt of a penalty order from the Office of the Commissioner of GST and Central Excise (Appeals), Coimbatore, confirming a demand of ₹1,87,60,764 along with tax and applicable interest. The order relates to the alleged wrongful availment of CENVAT credit on input purchases during the period from February 2010 to March 2011.
The company received the official communication on May 21, 2025, at around 11:00 AM IST. The order, referenced as 43/2025 – MDU-CE-APP, was issued on February 20, 2025.
Vedanta clarified that the matter pertains to historical transactions and added that it is currently evaluating its next course of action. In its filing to the stock exchanges, the company stated:
“The Company is hopeful of a favorable outcome thereof and does not expect the said Order to have any material financial impact on the Company.”
Summary of Regulatory Action
| Particular | Details |
|---|---|
| Authority | Office of the Commissioner of GST and Central Excise (Appeals), Coimbatore |
| Penalty Confirmed | ₹1,87,60,764 plus tax and interest |
| Period of Alleged Violation | February 2010 to March 2011 |
| Order Number & Date | 43/2025 – MDU-CE-APP, dated February 20, 2025 |
| Date of Receipt by Company | May 21, 2025 |
| Impact on Financials | No material financial impact expected |
Vedanta, a key player in the Indian natural resources sector, has faced multiple tax and regulatory challenges in the past. However, the company maintains confidence in its legal position in the current matter and aims for resolution through due process.
The disclosure has been made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.
REF: https://nsearchives.nseindia.com/corporate/VEDL_21052025183433_VEDLSEIntimationGSTPenaltyCoimbatoresigned.pdf
