Hindustan Zinc receives GST notice worth Rs 12.7 cr; company to file appeal

Hindustan Zinc on Friday said that it has received a goods and services tax (GST) notice from the Principal Commissioner, Central Excise & CGST Commissionerate on account of an "interpretational issue". 

In a regulatory filing, the company said that it has been asked to pay Rs 12.7 crore for GST and a 100 per cent penalty along with applicable interest for the period between July 2017 to March 2018.  

In response, the company said that it does not expect the order to have any material financial impact and it will file an appeal against the order. 

"Considering the merits of the case, the company intends to file appeal before the Appellate Authority within time-limit prescribed under the GST Law," it said in the filing.

 

"The company is hopeful of a favourable outcome thereof and does not expect the said order to have any material financial impact on the company."

The board of Hindustan Zinc is scheduled to meet on January 19 to approve and announce the financial results for the October-December quarter and for the nine months ended December 31, 2023. 

Last month, its board approved a second interim dividend of Rs 6 per share for 2023-24, totalling Rs 2,535.19 crore.

"The board of directors of the company through a resolution passed by circulation on Wednesday, December 6, 2023 have approved 2nd interim dividend of Rs 6 per equity share i.e. 300 per cent on face value of Rs 2 per share for the Financial Year 2023-24 amounting to Rs 2,535.19 crores," the company said in a stock exchange filing.

It announced its first interim dividend of Rs 7 per share in July last year. 

Hindustan Zinc is the world's second-largest integrated zinc producer and fifth-largest silver producer. On Friday, at 10:55 am, its shares were trading flat at Rs 317.15 apiece on BSE.