GST: Adjudicating Authority Upholds Zee Entertainment’s Tax Demand Amounting Rs 119.6 Crore

The Zee Entertainment Enterprises Limited (ZEEL), a popular Indian media conglomerate, has recently received adjudication orders from the Additional Commissioner of CGST, C.EX, Palghar Commissionerate, which relate to two different GST matters involving the disputed input tax credit. The orders demand Rs 869 million in one matter and Rs 327 million in another matter excluding the interest and penalty.

The Adjudication orders related to a show cause notice issued by the Directorate General of GST Intelligence (DGGI). As per the disclosure made by ZEEL to SEBI, both matters pertain to disputed income tax credit (ITC) arising from the wrongful credit of GST by the vendors.

The company has shared that the adjudication has been completed for the show cause notice, and the Commissioner of CGST has confirmed the tax demands in its adjudicating order. However, the company is disagreeing and is challenging the tax matters based on the legal advice received.

ZEEL also confirmed that there is no litigation against its key managerial personnel or any of its promoters in relation to the tax matter. It further clarified that the proceedings have not settled yet.