Hindustan Oil Exploration Company Fined for Non-Payment of GST on Royalty:

Hindustan Oil Exploration Company Fined for Non-Payment of GST on Royalty The Hindustan Oil Exploration Company Limited (HOEC) has recently shared that it has received a GST penalty of Rs 65.8 Lakh from the GST department. The penalty is related to the non-payment of GST on the royalty paid by the company. In an intimation made to the stock exchanges on February 19, 2026, the company said that it received a GST order on February 18, 2026, levying a penalty of Rs 65,81,478, along with the tax demand and interest. The order is issued by the Office of the Joint Commissioner (ST), Chengalpattu Intelligence Division.

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As per this order, the HOEC has failed to pay GST on the royalty paid to GOI on the production of gas and condensate in the PY-1 block, Cauvery Basin, during the 2019-2020 period. However, the company does not agree with the order, as it believes that there is no GST on royalty paid for the production of gas and condensate. Therefore, it has decided to challenge the order by filing an appeal before the Appellate Authorities, expecting a favourable outcome.

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HOEC is confident that the order does not have any significant financial impact on the company. The company made this disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.