Vodafone Idea Hit with GST Demand and Penalties Worth Rs 73 Crore

Monday, 2 September 2024, 10:27

Vodafone has been hit with a GST penalty totaling Rs 73 crore, impacting Vodafone Idea (VIL) significantly. This demand arises from alleged tax discrepancies and excess ITC claims, leading the telecom giant to challenge these orders. With a substantial fine imposed, the company's financial standing is under intense scrutiny.
Moneycontrol
Vodafone Idea Hit with GST Demand and Penalties Worth Rs 73 Crore

The Imposition of GST Penalties on Vodafone Idea

Vodafone has been slapped with an overwhelming GST demand orders amounting to over Rs 73 crore, which encompasses tax dues along with penalties and interest. This severe financial burden is detailed in a regulatory filing dated September 2.

Details of the GST Demand

The struggling telecom operator has received nine distinct orders from various GST offices related to alleged short payment of taxes and the excess availment of Input Tax Credit (ITC).

  • Highest Penalty in Kolkata: The Kolkata GST office imposed the top penalty of Rs 33.44 crore on September 1 due to claims of tax shortfall on outward supply.
  • Noida's Order: The Noida GST office mandated VIL to pay a fine of Rs 26.89 crore for excess ITC claimed.
  • Other Regional Orders: Additional penalties include amounts from Patna, Chandigarh, Andhra Pradesh, and Odisha.

In response, VIL has openly disagreed with these findings and intends to initiate steps to correct or alter these orders. "The company does not agree with the penalties and will take appropriate actions for rectification," the filing mentioned.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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