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Informative

Hindustan Zinc faces ₹73.46 lakh GST penalty on cement CENVAT credit

Update / Judgement Date

06 Oct 2025

Source

Taxscan

Author

Sakshi Bhardwaj — WCP Legal Desk

Reading Time

1 min read

Excise, VAT & CustomGST

Hindustan Zinc received a GST penalty order of ₹73.46 lakh related to CENVAT credit claimed on cement used in its operations. Authorities argued that the credit was ineligible under GST provisions, leading to penalty. The case reflects ongoing complexities in GST transition from legacy tax credits and interpretation issues. It highlights the importance of compliance and proper classification in indirect taxation. Such disputes also indicate the challenges faced by businesses in navigating GST audits and assessments.