Vodafone Idea Challenges Rs 638 Crore GST Penalty

Vodafone Idea faces a Rs 638-crore GST penalty from the Additional Commissioner, Central Goods and Service Tax in Ahmedabad. Disagreeing with the penalty, the company plans legal action. This comes after recent relief on its Adjusted Gross Revenue dues, including a moratorium and reassessment options.

Telecom giant Vodafone Idea (VIL) revealed on Thursday that it has been hit with a hefty penalty of approximately Rs 638 crore by the Office of Additional Commissioner, Central Goods and Service Tax, in Ahmedabad. This penalty pertains to alleged short payment of tax and improper utilization of Input Tax Credit.

In its official statement, the telecom operator expressed disagreement with the order and announced plans to pursue legal recourse. This development follows closely on the heels of the company receiving significant relief concerning its Adjusted Gross Revenue (AGR) dues, including a five-year payment moratorium approved by the Union Cabinet along with reassessment options.

The penalty was confirmed in a BSE filing where VIL detailed the demand, interest, and penalty related to the GST issue. Vodafone Idea stated its intent to challenge the financial implications of this order legally, reaffirming its position against the tax authority's claims.

(With inputs from agencies.)