A GST demand notice for Rs 84 crore was received by Balco, a division of Vedanta

 A GST demand notice for Rs 84 crore was received by Balco, a division of Vedanta

A GST demand notice for Rs 84 crore was received by Balco, a division of Vedanta

The Chhattisgarh Taxation Authority has released the demand notice, which is relevant to the 2017–18 fiscal year.

On December 23, Vedanta said that Bharat Aluminum Company Limited (BALCO), one of its subsidiaries, had received a demand notice for Rs 84 crore in Goods and Services Tax (GST).

According to the mining major's regulatory filing, the demand notice was issued by the "Office of the Joint Commissioner, Bilaspur" and relates to the financial year 2017–18. It was issued because of "various interpretative issues under the relevant provisions of the the Central Goods and Service Tax Act, 2017."

The firm said that "Rs 84,70,09,977" is the entire amount of GST required, and it has been asked to pay 10% of this amount as a penalty in addition to relevant interest.

According to the exchange filing, BALCO is now assessing the best course of action in this case. The firm does not anticipate that this ruling would have a significant financial effect, nor does its parent company Vedanta.

Vedanta acquired control of BALCO, a government-owned company, in 2001 when the Union Mines Ministry surrendered its 51 percent ownership interest in it.

According to reports from June of this year, the government was looking for ways to sell off a portion of its 49% investment in the firm in order to further cut its ownership.

The main hub of BALCO's activities is at Korba, Chhattisgarh. The company supplies high-grade bauxite from its mines in Kawardha and Mainpat.

The company's earnings after tax for the fiscal year that ended on March 31, 2023, was Rs 42 crore, a substantial decrease from the previous year's profit of Rs 2,736 crore. The total comprehensive income for FY2012 was Rs 2,720 crore, while it was Rs 75 crore.