Vodafone Idea Slapped With Rs 638-Crore GST Penalty; Plans Legal Challenge
In a statutory filing, Vodafone Idea said it disagrees with the order and will take legal action against it.
Telecom operator Vodafone Idea (VIL) on Thursday said it has received about Rs 638-crore GST penalty order from the Office of Additional Commissioner, Central Goods and Service Tax, Ahmedabad.
In a statutory filing, Vodafone Idea said it disagrees with the order and will take legal action against it.
The filing comes just a day after debt-laden telco received a major relief on its Adjusted Gross Revenue dues, with the Union Cabinet on Wednesday deciding to freeze its dues along with a 5-year payment moratorium and allowing capped AGR dues to be reassessed.
In a BSE filing on Thursday, VIL informed: "Order passed under Section 74 of the Central Goods and Services Tax Act, 2017 confirming penalty of Rs 6,37,90,68,254 along with the demand and interest as applicable."
The order came from the Office of the Additional Commissioner, Central Goods & Service Tax, Ahmedabad, and was received on Wednesday, VIL said, adding that it pertains to "allegation of short payment of Tax and excess availment of Input Tax Credit."
"The maximum financial impact is to the extent of tax demand, interest, and penalty levied. The company does not agree with the order and will take appropriate legal action(s) against the same," Vodafone Idea said.
