Vodafone Idea Receives Rs 16.73 Crore GST Penalty; Plans Appeal

Mumbai, February 28, 2025: Vodafone Idea Limited (NSE: IDEA, BSE: 532822) announced today that it has received an order from the Deputy Commissioner, Large Taxpayer Unit, West Bengal, imposing a penalty of Rs 16.73 crore under the Central Goods and Services Tax Act, 2017, and the corresponding West Bengal Goods and Services Tax Act, 2017.

Key Details of the GST Order:​

The regulatory authority has accused Vodafone Idea of excess input tax credit claims and short payment of taxes, leading to the substantial financial penalty.

Corporate Response & Next Steps:​

Vodafone Idea, disputing the allegations, stated clearly that the company does not agree with the findings of the GST authorities and intends to pursue legal action by filing an appeal against the order. This legal recourse aims to mitigate any adverse financial implications arising from the imposed penalty and associated tax demands.
The company, as per regulatory compliance, has duly informed the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE) under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements.

Management Commentary:​

"The Company does not agree with the Order and will take appropriate action(s) for filing an appeal against the same," said Pankaj Kapdeo, Company Secretary of Vodafone Idea Limited.

Market Implications & Investor Outlook:​

This development adds another challenge to Vodafone Idea's operational landscape amidst ongoing financial restructuring efforts. Investors and market participants will closely monitor the legal outcomes, given the potential financial and operational impacts associated with the penalty.