Hindustan Zinc announced on Friday that it has been issued a Goods and Services Tax (GST) notice by the Principal Commissioner of Central Excise & CGST Commissionerate, citing an “interpretational issue.”

In a recent regulatory filing, the company disclosed an obligation to remit Rs 12.7 crore for Goods and Services Tax (GST) along with a 100% penalty, accompanied by applicable interest, pertaining to the period spanning July 2017 to March 2018.

Responding to this development, the company asserted that it anticipates the order to have no significant financial ramifications and has plans to file an appeal against the decision.

“Given the merits of the case, the company intends to submit an appeal before the Appellate Authority within the stipulated timeframe as per the GST Law,” stated the filing. “The company is optimistic about a favorable outcome and does not foresee the mentioned order causing any substantial financial impact.”

The Board of Hindustan Zinc is slated to convene on January 19 to endorse and disclose the financial results for the October-December quarter and the nine months concluding on December 31, 2023.

Notably, in the preceding month, the Board sanctioned a second interim dividend of Rs 6 per share for the fiscal year 2023-24, aggregating Rs 2,535.19 crore.

“The board of directors, through a resolution passed by circulation on Wednesday, December 6, 2023, approved the 2nd interim dividend of Rs 6 per equity share, amounting to 300% on the face value of Rs 2 per share for the Financial Year 2023-24, totaling Rs 2,535.19 crores,” as per the stock exchange filing.

It’s noteworthy that the company had earlier declared a first interim dividend of Rs 7 per share in July of the preceding year.

Hindustan Zinc, recognized as the world’s second-largest integrated zinc producer and fifth-largest silver producer, observed its shares trading flat at Rs 317.15 apiece on BSE at 10:55 am on Friday.

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