Vodafone Idea faces penalty orders and a GST demand of Rs 73 crore

Telecommunications service provider, Vodafone Idea, a heavily indebted teleco, has received demand orders from several GST offices to pay over Rs 73 crore in tax dues, penalties, and interest, according to a regulatory filing on Monday. The telco has received nine orders from various GST offices, the most of which are for alleged underpayment of taxes and the suspected use of excess input tax credit.

Due to alleged "excess availment of ITC and short tax paid for FY 2019-20" by the telco, the Noida GST office ordered Vodafone Idea (VIL) to pay a "penalty of Rs 26,89,94,489 along with demand and interest as applicable" on 1st September.

Based on the submission, the company was hit with the highest penalty of Rs 33.44 crore by the GST office in Kolkata on 1st September along with a demand for tax and interest for " claimed Tax short paid on outward supply, excess ITC availed".

In accordance to the filing, the company has been hit with penalties totaling Rs 4,211 from the GST office in Chandigarh, Rs 1.57 crore from the Andhra Pradesh circle, Rs 9.51 lakh from Odisha, and Rs 50,000 and Rs 36,000 from the Himachal Pradesh office, and the Patna GST office has assessed interest and demand on VIL in addition to a penalty of Rs 10.94 crore.

VIL declared that it disagrees with the directives and will take the necessary steps to reverse or correct them. "The company is not satisfied with the orders and will take necessary action(s) for rectifying/ reversing of the same," the filing added.