In Short:
Vodafone Idea, struggling with debt, has been ordered by various GST offices to pay over Rs 73 crore in tax dues, penalties, and interest. This includes a hefty Rs 33.44 crore penalty from Kolkata for alleged tax shortfalls. The company disputes these orders and plans to challenge them, seeking rectification. Other regional offices also issued demands for smaller amounts.
Vodafone Idea, a telecom company grappling with significant debt challenges, has come under scrutiny from several GST offices, which have issued demand orders totaling over Rs 73 crore. This amount includes tax dues, penalties, and interest, as disclosed in a regulatory filing on Monday. The company has received a total of nine orders primarily concerning alleged shortfalls in tax payments and the purported excess claim of input tax credit (ITC).
Details of the Penalties
The highest penalty of Rs 33.44 crore was imposed by the GST office in Kolkata on September 1, citing “alleged tax short paid on outward supply” and the excess availing of ITC.
Additionally, the Noida GST office demanded a payment of Rs 26,89,94,489, alongside applicable interest, for what it described as “excess availment of ITC and short tax paid for FY 2019-20.”
In tandem, the Patna GST office levied a penalty of Rs 10.94 crore, coupled with demands for tax and interest. Other notable penalties include orders from the Chandigarh GST office for Rs 4,211, Rs 1.57 crore from the Andhra Pradesh circle, Rs 9.51 lakh from Odisha, and minor penalties of Rs 50,000 and Rs 36,000 from Himachal Pradesh.
Company’s Response
In light of these developments, Vodafone Idea has expressed its disagreement with the issued orders. The company is prepared to undertake appropriate actions aimed at the rectification or reversal of these penalties. According to the filing, “The company does not agree with the orders and will take appropriate action(s) for rectification/reversal of the same.”
