Vodafone Idea Limited has disclosed receiving a penalty order under Section 74 of the Central Goods and Services Tax Act, 2017, issued by the Joint Commissioner, Central Tax, Pune-II Commissionerate. The order demands a payment of ₹363.28 crore (₹3,63,28,47,211), including applicable tax, interest, and penalties.
The order was officially received on January 30, 2025, and pertains to the alleged reversal of Input Tax Credit (ITC) on exempt supply of services. Vodafone Idea intends to contest the order and pursue legal remedies.
Key Details of the Penalty:
- Issuing Authority: Joint Commissioner, Central Tax, Pune-II Commissionerate
- Penalty Amount: ₹363.28 crore (₹3,63,28,47,211)
- Nature of Violation: Alleged reversal of ITC on exempt service supplies
- Date of Receipt: January 30, 2025
Company’s Response:
Vodafone Idea stated its disagreement with the order and plans to challenge it through legal proceedings. The company has emphasized its commitment to exploring legal options to secure a favorable outcome.
Potential Impact:
While Vodafone Idea faces a short-term financial impact, it remains confident that its legal approach will resolve the issue favorably. The company maintains that the penalty amount will not materially affect its long-term business strategy.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or legal advice. Stock market investments are subject to risks. Always consult a financial advisor before making any decisions.
