Mumbai, January 31, 2025 – Vodafone Idea Limited (NSE: IDEA | BSE: 532822) has disclosed a Goods and Services Tax (GST) penalty imposed by the Excise and Taxation Officer, Karnal (Haryana), under Section 74 of the Central Goods and Services Tax Act, 2017. The company, however, disagrees with the order and intends to take necessary actions for rectification or reversal.
Key Details of the GST Order
| Sr. No | Particulars | Details |
|---|---|---|
| 1 | Authority | Excise and Taxation Officer, Karnal, Haryana |
| 2 | Nature of Action | Order under Section 74 of the CGST Act, confirming a penalty of ₹78,62,447, along with demand and applicable interest |
| 3 | Date of Order | January 31, 2025 |
| 4 | Allegation | Excess availment of Input Tax Credit (ITC) for FY 2017-18 |
| 5 | Financial Impact | Maximum impact limited to tax demand, interest, and penalty levied |
Company's Stand on the Order
Vodafone Idea has stated that it does not agree with the order and will initiate appropriate corrective measures to challenge or rectify the imposed penalty. The company has not yet specified the legal route it will take but has confirmed that it will address the issue as per due process.Market Implications
While the financial impact of ₹78.6 lakh is relatively minor for a company of Vodafone Idea’s scale, the regulatory scrutiny on tax compliance remains a key concern for investors. Given the company's ongoing efforts to improve its financial standing amid market competition, this development may raise questions about its compliance framework.What’s Next?
Vodafone Idea is expected to challenge the order through regulatory channels, possibly filing an appeal with higher tax authorities. Investors will closely monitor the company's next steps and any further updates from the tax department.Stay tuned for further developments.