Vodafone Idea disclosed that it was issued a GST penalty order of Rs 637.91 crore under the Central Goods and Services Tax Act. The telecom company received this penalty order from the Office of the Additional Commissioner, Central Goods and Services Tax, Ahmedabad South, on December 31. The penalty order, passed under Section 74 of the CGST Act, includes a penalty amount along with tax and applicable interest.
The company expressed its disagreement with the order and mentioned its intention to pursue legal actions against it. The penalty order accuses Vodafone Idea of short payment of tax and excessive availment of Input Tax Credit. The financial impact is primarily related to the tax demand, interest, and penalty imposed. Despite the allegations, the telecom operator reiterated its stance of challenging the order through legal means.
Vodafone Idea clarified recent speculations regarding a reported five-year moratorium on its AGR dues. The company denied receiving any official communication from the government confirming such a decision. Refuting the claims, Vodafone Idea emphasized that it would disclose any significant developments as required. The clarification was issued in response to market reactions following the speculative reports, which had led to a notable impact on Vodafone Idea’s stock performance.
