Mumbai, January 31, 2025 – Vodafone Idea Limited (Vi) has disclosed a significant penalty imposed by the tax authorities under the Central Goods and Services Tax (GST) Act, 2017. The Joint Commissioner, Central Tax, Pune-II Commissionerate, has passed an order under Section 74 of the GST Act, confirming a penalty of ₹3,632.85 crore, including demand and interest.
Key Highlights of the Tax Order
| Sr. No | Particulars | Details |
|---|---|---|
| 1 | Issuing Authority | Joint Commissioner, Central Tax, Pune-II Commissionerate |
| 2 | Nature of Action | Order confirming penalty of ₹3,632.85 crore under Section 74 of GST Act |
| 3 | Date of Order Receipt | January 30, 2025 |
| 4 | Alleged Violation | Reversal of Input Tax Credit (ITC) on exempt supply of services |
| 5 | Financial Impact | Potential liability to the extent of tax demand, interest, and penalty |
Company’s Response & Next Steps
In its regulatory filing with the NSE and BSE, Vodafone Idea has emphasized that it intends to contest the tax demand, signaling potential legal recourse. The company did not specify the timeline for its appeal but clarified that the financial liability will depend on the final outcome of legal proceedings.Market & Investor Implications
This tax demand could add to Vodafone Idea’s financial burden, as the telecom operator has been struggling with high debt and cash flow concerns. The company has been actively raising capital and seeking government relief to manage its financial health.Given the high quantum of the penalty, investors will closely watch Vi’s next steps, including potential legal challenges or negotiations with tax authorities.
Investors are advised to track further announcements from the company regarding this matter.