Vedanta Limited, has been issued an order by tax authorities in Kakinada, confirming a penalty of Rs 30,43,412 along with a tax demand and applicable interest. The Office of the Assistant Commissioner of Central Tax, Kakinada issued the order on August 8, 2025, over a purported disparity in the Input Tax Credit (ITC) application process for the fiscal years 2018-19 to 2022-23.
The ruling, formally designated as Order-in-Original No. 14/2025-26/GVR/CGSTKKD/GST, was dated July 25, 2025, and reached the company around 6:00 PM IST on August 8, 2025. This action highlights ongoing scrutiny by tax authorities on corporate tax compliances, particularly concerning the intricacies of Goods and Services Tax (GST) provisions related to Input Tax Credits.
Input Tax Credit is a mechanism under GST that allows businesses to reduce their tax liability by claiming credit for taxes paid on inputs used in the production of goods or services. Disputes often arise over the eligibility or proper documentation for such credits.
Despite the penalty, Vedanta Limited has expressed confidence in challenging the decision. The company has publicly stated its intention to file an appeal against the said Order with the Appellate Authorities.
In a regulatory filing, Vedanta conveyed its optimism regarding the outcome of the appeal process, It stated that it remains optimistic about a favorable resolution and does not anticipate the order to have any significant financial impact on the Company.
This indicates that the company views the demand as contestable and believes it will be able to resolve the matter without significant adverse financial implications.
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