GST Demand Notice of Rs.84 crore to Vedanta Arm BALCO

Vedanta announced that its subsidiary Bharat Aluminium Company Limited (BALCO) has received a Goods and Services Tax (GST) demand notice in the amount of Rs. 84 crore on December 23.

The demand notice was issued by the “Office of the Joint Commissioner, Bilaspur” and relates to the financial year 2017-18 due to “various interpretational issues under the relevant provisions of the Central Goods and Services Tax Act, 2017,” according to a regulatory filing by the mining major.

The total GST demand has been made for “Rs.84,70,09,977,” according to the corporation, which has also been required to pay a penalty of 10% of this amount, as well as relevant interest.

According to the exchange filing, BALCO is currently reviewing the next line of action to be taken in this situation. The company, along with its parent Vedanta, do not anticipate any major financial impact from the ruling, it added.

BALCO, formerly a government-owned firm, was acquired by Vedanta after the Union Mines Ministry sold 51 percent of its stake in the company in 2001.

According to reports, the government was looking into selling a piece of its 49 percent ownership in the company in June of this year.

BALCO’s main operations are centered on Chhattisgarh’s Korba. High-grade bauxite is supplied by mines operated by the business in Kawardha and Mainpat.

The company’s profit after tax for the financial year ended March 31, 2023 was Rs.42 crore, a significant decrease from Rs.2,736 crore the previous year. The overall comprehensive income was Rs.75 crore, down from Rs.2,720 crore in FY22.