Vodafone Idea Receives INR 638 Crore GST Penalty Orders; Plans Legal Challenge

Vodafone Idea Ltd has received goods and services tax (GST) penalty orders amounting to INR 638 crore, according to regulatory disclosures made by the company. The telecom operator said it plans to challenge the orders through appropriate legal action.

Penalty Orders Issued by Tax Authorities

In an exchange filing, Vodafone Idea said the GST authorities have issued penalty orders related to alleged tax liabilities. The total financial impact of the orders stands at ₹638 crore, including penalties and related charges.

The company clarified that the orders pertain to interpretations of GST provisions and tax demands raised by authorities for specific assessment periods.

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Company Disputes the Claims

Vodafone Idea stated that it does not agree with the tax demands outlined in the orders and believes the claims are not maintainable on legal grounds. The telecom firm said it will pursue remedies available under the law, including appeals before relevant judicial or appellate forums.

The company added that it does not expect the orders to have an immediate material impact on its operations at this stage.

Regulatory and Financial Context

The development comes at a time when Vodafone Idea continues to face financial stress, which is driven by regulatory dues, intense competition, and the need for sustained capital support. Tax-related disputes have been a recurring challenge for companies in the telecom sector, given the complexity of indirect tax transitions following the rollout of GST.

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