Vedanta Limited has disclosed receiving multiple GST penalty orders from various tax authorities across different locations. The company made comprehensive disclosures under Regulation 30 of SEBI Listing Regulations on December 30 and 31, 2025, revealing three separate penalty orders totaling ₹2.61 crores.

Multiple GST Penalty Orders

The mining giant has received penalty orders from three different tax jurisdictions within a span of two days. The penalties relate to various GST compliance issues spanning multiple financial years from 2018-19 to 2020-21.

Nature of Tax Violations

Each penalty order addresses different aspects of GST compliance violations:

Jharsuguda Order: The penalty stems from issues related to Input Tax Credit reversal in proportion to exempt supplies under sections 17(2) and 17(3) of the CGST Act, 2017.

Delhi South Order: This penalty of ₹18.53 lakhs pertains to disputes on Input Tax Credit under Section 17(5) for the period covering FY 2018-19 to FY 2020-21.

Rourkela Order: The largest penalty of ₹1.76 crores was issued under Section 74 of the CGST Act, 2017, relating to differences in turnover reported in GSTR-9C between GST turnover and audited financial statements turnover for FY 2018-19.

Company's Response Strategy

Vedanta Limited has maintained a consistent approach across all three penalty orders. The company intends to file appeals against each order with the appropriate appellate authorities. Management has expressed confidence in achieving favorable outcomes through the appeal process.

Financial Impact Assessment

Despite the substantial combined penalty amount of ₹2.61 crores, Vedanta Limited has stated that it does not expect these orders to have any material financial impact on the company's operations or financial performance. The company's confidence stems from its belief in the strength of its position and the likelihood of success in the appellate process.

The disclosures fulfill the company's regulatory obligations under SEBI Listing Regulations, ensuring transparency with investors and market participants regarding significant regulatory developments affecting the mining conglomerate.

Vedanta shares surged 2.47% to hit a new 52-week high of Rs 616.00 on the BSE, driven by strong investor interest in metal stocks and the company's recent success in securing the Depo Graphite-Vanadium mining block. The rally coincided with a broader sectoral strength in metals and a significant uptick in silver prices globally.

Stock Performance and Market Rally

The metal and mining major's strong performance was supported by a remarkable rally in its subsidiary, Hindustan Zinc Ltd, whose shares touched a fresh all-time high of Rs 646.80 during intraday trade. Hindustan Zinc has demonstrated exceptional momentum, rising consistently over the past 19 sessions amid a sharp global surge in silver prices.

Critical Minerals Block Acquisition

Vedanta has been officially declared the successful bidder for the Depo Graphite-Vanadium block under Critical Mineral Auctions Tranche IV. The company announced that it received confirmation from the Ministry of Mines, Government of India, after fulfilling all required statutory compliances as per the letter dated December 23, 2025.

Silver Price Impact on Performance

The sustained rally in Vedanta and its subsidiary has been closely linked to the unprecedented surge in silver prices. Internationally, silver breached the USD 82.00 per ounce mark for the first time, while domestic silver futures crossed Rs 2.50 lakh per kilogram. This strong price action in precious metals has been particularly beneficial for companies with exposure to base and precious metals operations.

Strategic Portfolio Expansion

The acquisition of the Depo Graphite-Vanadium block represents a strategic expansion into critical minerals that are increasingly important for various industrial applications. Graphite serves as a crucial component in battery manufacturing and steel production, while vanadium is essential for steel alloys and energy storage systems. Vedanta noted that this win would further strengthen the company's critical minerals portfolio, positioning it well in the evolving commodities landscape.