Vodafone Idea to challenge Rs 637.91 crore GST penalty
New Delhi: Vodafone Idea on Thursday said it has received a GST penalty order of Rs 637.91 crore under Section 74 of the Central Goods and Services Tax Act (CGST), 2017.
In an exchange filing, the telecom company said it received the penalty order on December 31 from the office of the Additional Commissioner of Central Goods and Services Tax (CGST), Ahmedabad South.
The company said the order, passed under Section 74 of the Central Goods and Services Tax Act, 2017, “confirms the imposition of a penalty of Rs 6,37,90,68,254 along with the tax demand and applicable interest.”
It further stated that “the company does not agree with the order and will take appropriate legal action against it.”
The order alleges underpayment of tax and excessive availment of input tax credit. The maximum financial impact is to the extent of the tax demand, interest, and penalty imposed.
However, the telecom operator stated that it disagrees with the order and will take appropriate legal action against it.
Earlier on Wednesday, Vodafone Idea issued a clarification following reports claiming that the Union Cabinet had approved a five-year moratorium and frozen the company’s adjusted gross revenue (AGR) dues at â‚ą87,695 crore.
In a stock exchange filing, Vodafone Idea stated that these reports were based on speculation and that it had not received any official communication confirming such a decision. “We have not received any communication from the government regarding the above-mentioned matter,” the telecom operator said in its exchange filing.
It further stated, “Whenever there is a development requiring disclosure, we will take appropriate action.”
This clarification comes amid a sharp market reaction to these reports. Following the previous report, Vodafone Idea shares witnessed heavy selling pressure.
The company’s shares closed at Rs 11.63 on Thursday, up 8%.
