Vodafone Idea Hit with GST Demand of Rs 73 Crore Following Alleged Tax Issues

Monday, 2 September 2024, 10:27

Vodafone Idea is facing a GST penalty totaling Rs 73 crore, raising concerns about its financial viability. The demand includes tax dues along with penalties and interest, stemming from alleged short payments and excess ITC claims. The company contests the orders and plans to challenge the penalties imposed.
Moneycontrol
Vodafone Idea Hit with GST Demand of Rs 73 Crore Following Alleged Tax Issues

GST Demand and Penalties Imposed on Vodafone Idea

Vodafone Idea (VIL) has been issued a GST demand of over Rs 73 crore, comprising tax dues, penalties, and interest. This action relates primarily to accusations of short payment of taxes and claims of excess input tax credit (ITC).

Details of the GST Orders

The telecom giant has received multiple orders from various GST authorities, indicating serious financial repercussions:

  • In Kolkata, a penalty of Rs 33.44 crore was imposed for alleged tax discrepancies.
  • The Noida GST office ordered a penalty of approximately Rs 26.9 crore for excess ITC claims.
  • Further penalties were issued from the Patna office totaling Rs 10.94 crore.

Additional penalties were received from other regions, including Chandigarh and Andhra Pradesh, amounting to significant figures according to their regulatory filing.

Company's Response

Vodafone Idea contests these GST orders, stating, “The company does not agree with the orders and will take appropriate action(s) for rectification/reversal of the same.” The situation continues to evolve as legal actions are expected to follow.


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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