GST Notice: Vedanta’s subsidiary company BALCO i.e. Bharat Aluminum Company Limited has received a notice from the GST Department. The company has been given a notice by Goods and Services Tax (GST) to pay a total of Rs 84.70 crore.
According to the information given to the stock market, this notice has been issued to the company by the Office of the Commissioner State Tax Department of Bilaspur, Chhattisgarh for the financial year 2017-18.
I will have to pay this much fine
In the notice received by BALCO from the GST department, it has been asked to pay a total of Rs 84,70,09,977. Along with this, it has been said that 10 percent interest as well as fine will be imposed on this amount. BALCO is exploring different legal options on this matter, but the company hopes that this notice will not have any major financial impact on it.
What does the company do?
BALCO was a government company, which was established in the year 1965. In 2001, the government had sold 51 percent of this company, which Vedanta bought and acquired its ownership. This company mainly does the mining of Bauxite from mines around Korba in Chhattisgarh.
The total income of BALCO in the financial year 2021-22 was Rs 2,720 crore, which came down to only Rs 75 crore in the financial year 2023. The company’s profit in the financial year 2022-23 was Rs 42 crore. Whereas before this it was Rs 2,736 crore. There has been a huge decline in the company’s profit in the last one year.
