Vedanta Receives ₹15.4 Lakh GST Penalty for Using CENVAT Credit to Pay Excise Duty
Vedanta Limited has received a Rs. 15.4 lakh GST penalty for using CENVAT credit to pay excise duty for FY 2016–17, but expects no material financial impact.
Vedanta Limited has been fined Rs. 15.43 lakh by the Office of the Assistant Commissioner, GST and Central Excise, Jharsuguda, for using CENVAT credit to pay Central Excise Duty during the financial year 2016 to 2017. The order also includes a tax demand and applicable interest, bringing further scrutiny to legacy tax practices under pre-GST rules. According to a regulatory filing...
Vedanta Limited has been fined Rs. 15.43 lakh by the Office of the Assistant Commissioner, GST and Central Excise, Jharsuguda, for using CENVAT credit to pay Central Excise Duty during the financial year 2016 to 2017. The order also includes a tax demand and applicable interest, bringing further scrutiny to legacy tax practices under pre-GST rules.
According to a regulatory filing made by the company, Vedanta received the penalty order on July 23, 2025, following an official decision issued on June 19, 2025. The action was taken under the Central Excise rules that existed before the implementation of the Goods and Services Tax (GST) regime in 2017.
The issue relates to Vedanta’s use of CENVAT credit, a system that previously allowed manufacturers to claim credit for the excise duty paid on inputs. The tax authority found that the company improperly availed and used this credit to settle its excise duty dues for that year, resulting in the confirmed penalty.
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In response, Vedanta has said it intends to file an appeal against the order before the appropriate appellate authority. The company expressed confidence in a favourable decision and stated that the order is not expected to have any material financial impact on its operations or profitability.
The company made this disclosure in line with Regulation 30 of the Securities and Exchange Board of India’s (SEBI) Listing Obligations and Disclosure Requirements. The statement was shared with both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), as required under the rules for material disclosures affecting listed companies.
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Despite the penalty, Vedanta has assured investors that its business operations remain unaffected. The company continues to monitor and comply with all regulatory developments and is prepared to pursue legal remedies in accordance with law.
About Vedanta Limited
Vedanta Limited is a diversified natural resources company with operations spanning oil and gas, zinc, lead, silver, copper, iron ore, steel, and aluminum. It is one of India’s largest producers of zinc and aluminum and operates under the parent group Vedanta Resources Limited.
In its recent financial update for the quarter ended June 2025, Vedanta reported a moderate rise in consolidated net profit, driven by higher aluminum and zinc prices and improved cost efficiencies. The company also recently announced its intention to restructure its businesses to unlock long-term shareholder value.
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