Mumbai, January 30, 2025 – Vodafone Idea Limited has disclosed that it received an order from the Joint Commissioner, CGST & Central Excise, Patna, imposing a penalty of ₹55.22 crore under Section 74 of the Central Goods and Services Tax (CGST) Act, 2017.
Key Highlights:
| Particulars | Details |
|---|---|
| Regulatory Authority | Joint Commissioner, CGST & Central Excise, Patna |
| Nature of Order | Penalty confirmation under Section 74 of CGST Act, 2017 |
| Penalty Amount | ₹55,22,46,22/- plus interest |
| Allegation | Excess availment of Input Tax Credit (ITC) |
| Date of Order Receipt | January 29, 2025 |
| Company’s Stance | Disagrees with the order; plans to take appropriate legal action |
Company's Response
Vodafone Idea has stated that it does not agree with the penalty imposed and intends to take appropriate actions to contest the decision. The company is expected to challenge the order through legal means, which could involve filing an appeal before the appropriate tax authorities.Financial & Operational Impact
The penalty, including tax demand and interest, could have a financial impact of ₹55.22 crore, but the company has not disclosed any immediate operational disruptions. Vodafone Idea emphasized that it remains committed to resolving the matter in accordance with legal procedures.Market Implications
Investors and analysts will closely monitor how the telecom operator handles the tax dispute, especially given its existing financial constraints and ongoing fundraising efforts. Vodafone Idea has been actively working on debt restructuring and capital infusion plans to strengthen its financial position.The stock’s performance in the coming days may reflect investor sentiment on the company’s ability to navigate regulatory and financial challenges.