Voda Idea gets ₹638 cr GST penalty order, firm disagrees with order and will take legal action

NEW DELHI: Telecom operator Vodafone Idea (VIL) on Thursday said it has received a GST order imposing a penalty of about Rs 638 crore from the Office of the Additional Commissioner, Central Goods and Services Tax (CGST), Ahmedabad, and will challenge it legally.

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In a statutory filing, the debt-laden telco said the order, passed under Section 74 of the CGST Act, 2017, confirms a penalty of Rs 6,37,90,68,254 along with applicable tax demand and interest.

‘The order relates to allegations of short payment of tax and excess availment of input tax credit. Vodafone Idea said it does not agree with the findings and will take appropriate legal action, adding that the maximum financial impact would be limited to the tax demand, interest and penalty levied.

‘The GST order comes a day after Vodafone Idea received major relief on its adjusted gross revenue (AGR) dues.