Mumbai, February 4, 2025
Vodafone Idea Limited has disclosed an order issued under the Central Goods and Services Tax Act, 2017 imposing a penalty of ₹2.49 crore. The company has stated that it does not agree with the order and will take appropriate action against itIDEA_04022025132357_SEI….Key Details of the GST Order
| Particular | Details |
|---|---|
| Authority Issuing the Order | Additional Commissioner of CGST & C. Ex., Mumbai |
| Nature of Order | Penalty confirmation under Section 74 of CGST Act, 2017 / Maharashtra GST Act, 2017 |
| Penalty & Financial Impact | ₹2,48,57,915/- along with applicable demand and interest |
| Date of Order Receipt | February 3, 2025 |
| Alleged Violation | Non-payment of GST under the reverse charge mechanism |
| Company's Stand | Vodafone Idea does not agree with the order and intends to take necessary action against itIDEA_04022025132357_SEI…. |
Company’s Response & Next Steps
Vodafone Idea has stated that it does not agree with the findings of the Additional Commissioner of CGST & C. Ex. and intends to challenge the penalty order. The company has assured stakeholders that appropriate legal and regulatory measures will be taken in responseIDEA_04022025132357_SEI….Given Vodafone Idea’s ongoing financial restructuring efforts, the company will likely seek relief or appeal through judicial or quasi-judicial forums.
Market & Investor Implications
While the financial impact of the GST penalty is relatively small compared to Vodafone Idea’s overall liabilities, regulatory disputes can create temporary uncertainties for investors. However, the company's decision to challenge the order suggests confidence in its tax compliance stance.Investors will be watching closely for further developments, including Vodafone Idea’s next course of action in addressing this tax demand.