Struggling telecom giant Vodafone Idea faces multiple GST demand notices, totaling over ₹73 crore, plans to challenge the orders.
NEW DELHI (Economy India) Telecom company Vodafone Idea, currently battling financial woes, has received demand notices from various GST offices totaling over ₹73 crore. These notices include tax dues, penalties, and interest. The company disclosed this information in a regulatory filing, indicating its intent to challenge the demands.
Multiple GST Notices Issued
Vodafone Idea has been served with nine separate GST demand notices. The majority of these notices relate to alleged underpayment of taxes and improper claims of Input Tax Credit (ITC). The company has been notified by GST offices across several regions, including Kolkata, Patna, Chandigarh, Andhra Pradesh, Odisha, and Himachal Pradesh.
Kolkata GST Office Issues Largest Demand
The most significant of these demands comes from the Kolkata GST office, which issued a notice on 1 September 2024. The notice imposes a penalty of ₹33.44 crore on Vodafone Idea, citing “underpayment of tax on outward supplies and excess ITC claims.” The demand also includes associated interest.
Company to Appeal Against Orders
Vodafone Idea has expressed its disagreement with the demand notices and intends to appeal the orders. In its regulatory filing, the company stated, “The company does not agree with these orders and will pursue appropriate corrective actions.”
This isn’t the first time Vodafone Idea has faced such demands. On 30 August 2024, the Patna GST office also issued a notice demanding ₹16.7 crore in taxes and penalties. The company similarly disagreed with this demand and indicated it would follow the proper legal procedures to contest the order.
Financial Struggles Continue
Vodafone Idea has been under significant financial pressure, struggling with heavy debt and fierce competition in the telecom sector. The added burden of these GST demand notices further complicates the company’s path to recovery.
Economy India
