Vodafone Idea Faces Rs 73 Crore GST Notice: Telecom Company To Contest Demand

A Regulatory Filing on Monday stated that Vodafone Idea, A Telecom Company beset by Debt, has received Demand Notices from multiple GST offices to pay more than Rs 73 crore in Tax Arrears, Penalties, and Interest. Nine orders have been sent to the business by different GST offices, Primarily over suspected Tax underpayment and alleged overabundance of input Tax Credit (ITC).

According to the filing, on September 1, the GST office in Kolkata Assessed the Company the Maximum Penalty of Rs 33.44 crore in Addition to a Tax and Interest demand for "Alleged Tax short paid on Outward Supply, Excess ITC availed." Due to the alleged "Excess Availment of ITC and short Tax Paid for FY 2019-20" by the Company, the Noida GST office ordered Vodafone Idea (VIL) to pay a "Penalty of Rs 26,89,94,489 Along with Demand and Interest as Applicable" on September 1.

The Patna GST office has Assessed Interest and Demand on VIL in addition to a Penalty of Rs 10.94 crore. According to the Filing, the Company has been hit with Penalties Totaling Rs 4,211 from the GST office in Chandigarh, Rs 1.57 crore from the Andhra Pradesh circle, Rs 9.51 lakh from Odisha, and Rs 50,000 and Rs 36,000 from the Himachal Pradesh Office. VIL declared that it disagrees with the directives and will take the necessary steps to reverse or correct them. "The Company does not agree with the orders and will take appropriate action(s) for Rectification/ Reversal of the same," Stated the Petition.

Author:
Aarya Kadam (News Writer) is a final-year BBA student and a creative writer with a passion for current affairs and legal judgments.