Vedanta arm BALCO gets Rs 84-crore GST demand notice
The demand notice has been issued from the “Office of the Joint Commissioner, Bilaspur”, and pertains to the period of fiscal year 2017-18 on account of “various interpretational issues under the relevant provisions of the Central Goods and Services Tax Act, 2017”, the mining major said in a regulatory filing.
The total GST demand has been made for “Rs 84,70,09,977”, the company said, adding that it has also been asked to pay 10 percent of this amount as penalty along with applicable interest.
BALCO is in the process of evaluating the next course of action to be adopted in this matter, the exchange filing added. The company, along with its parent Vedanta, do not expect the order to have any material financial impact, it further noted.
BALCO, once a government-owned entity, was taken over by Vedanta when the Union Mines Ministry offloaded 51 percent of its stake in the entity in 2001.
In June this year, reports said the government was exploring the options to further reduce its holding in the company by selling a portion of its 49 percent stake.
The key operations of BALCO is centred around Chhattisgarh’s Korba. The company-operated mines, located in Kawardha and Mainpat, supply high-grade Bauxite.
In the financial year ending March 31, 2023, the company’s profit after tax came in at Rs 42 crore, strikingly lower as compared to Rs 2,736 crore in the year-ago period. The total comprehensive income stood at Rs 75 crore, as compared to Rs 2,720 crore in FY22.
