Mumbai, India – February 5, 2025:
Vodafone Idea Limited has disclosed to the stock exchanges that it has received an order under the Central Goods and Services Tax Act, 2017 from the Additional Commissioner, CGST Commissionerate, Haryana. The order, issued under Section 74 of the CGST Act, 2017, confirms a penalty of ₹16.97 crore, along with demand and applicable interest.
Key Details of the Order:
| Sr. No | Particular | Details |
|---|---|---|
| 1 | Issuing Authority | Additional Commissioner, CGST Commissionerate, Haryana |
| 2 | Nature of Action | Order passed under Section 74 of CGST Act, 2017, confirming a penalty of ₹16,96,94,250, along with demand and applicable interest |
| 3 | Date of Order Receipt | February 4, 2025 |
| 4 | Alleged Violation | Non-payment of GST under the reverse charge mechanism |
| 5 | Financial Impact | Maximum impact limited to the tax demand, interest, and penalty |
Company’s Response & Next Steps
Vodafone Idea has explicitly stated that it does not agree with the order and intends to take appropriate actions to contest the ruling. The company is likely to appeal against the penalty, though specific details of the legal recourse are yet to be disclosed.Market & Financial Implications
- Financial Impact: The penalty of ₹16.97 crore, coupled with applicable interest and tax demand, may marginally impact Vodafone Idea’s cash flows. However, given the company’s ongoing fundraising efforts and operational scale, the impact is not expected to be material.
- Legal & Compliance Risk: The alleged non-payment of GST under the reverse charge mechanism could signal further regulatory scrutiny, potentially leading to additional liabilities if similar non-compliance cases arise.
- Investor Sentiment: Investors may closely monitor Vodafone Idea’s next steps in contesting the penalty, as well as the possible financial and operational repercussions.