Vodafone Idea, a major telecom company struggling with debt, has been hit with multiple demand orders from various GST (Goods and Services Tax) offices across India. These orders demand that the company pay over Rs 73 crore, which includes tax dues along with penalties and interest. The demands stem from allegations of short payments on taxes and excessive availing of input tax credit (ITC) by the company.
Details of the GST Orders
The company has received nine orders from different GST offices, each citing various reasons for the demands. The highest penalty was issued by the GST office in Kolkata, which has ordered Vodafone Idea to pay Rs 33.44 crore. This penalty is based on allegations of underpayment of taxes on outward supplies and excess ITC claims.
In addition, the Noida GST office has demanded a significant penalty of Rs 26.89 crore, also related to claims of excess ITC and short tax payments for the financial year 2019-20. The Patna GST office has issued a penalty order of Rs 10.94 crore on similar grounds.
Other GST offices have issued smaller penalties, including Rs 4,211 from Chandigarh, Rs 1.57 crore from Andhra Pradesh, Rs 9.51 lakh from Odisha, Rs 50,000 from Himachal Pradesh, and Rs 36,000 from another office in Himachal Pradesh.
Vodafone Idea’s Response
Vodafone Idea has publicly stated that it disagrees with the orders issued by the various GST offices. The company has indicated its intent to take appropriate legal and administrative actions to either reverse or rectify these orders. In its official filing, the company asserted, “The company does not agree with the orders and will take appropriate action(s) for rectification/ reversal of the same.”
This situation adds to the financial challenges faced by Vodafone Idea, which has been grappling with significant debt and regulatory issues. The company is likely to contest these demands vigorously as it seeks to stabilize its financial standing.
