The GST office in Patna has ordered debt-ridden Vodafone Idea (VIL) to pay Rs 15.19 crore in taxes, along with a penalty of Rs 1.51 crore, for allegedly availing input tax credit (ITC) it was not eligible for during FY 2019-20 and 2020-21. This development was disclosed in a regulatory filing by the company on Wednesday.
According to the filing, the Joint Commissioner for CGST and Central Excise in Patna passed the order under the Central Goods and Services Tax Act, 2017. The order confirms the demand of Rs 15.19 crore, along with the penalty and applicable interest.
Vodafone Idea received the order on August 28, 2024, which alleges that the company had availed ineligible ITC during the mentioned financial years. The total financial impact includes the tax demand, penalty, and interest levied on the company.
Vodafone Idea has stated that it does not agree with the order and intends to pursue appropriate legal actions to challenge the ruling. The company emphasized that it will take necessary steps to address the situation and protect its interests.
This development adds to the financial challenges faced by Vodafone Idea, which has been grappling with significant debt and operational pressures. The company’s decision to contest the GST order highlights its commitment to navigating the complex regulatory environment while managing its financial obligations.
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