Vodafone Idea’s troubles increased, GST department imposed fine of Rs 638 crore, company will go to court

New Delhi. Another new chapter has been added to the financial challenges of debt-laden telecom operator Vodafone Idea (VIL). The company said on Thursday that it has received an order imposing a fine of Rs 638 crore from the office of the Additional Central Goods and Services Tax (CGST) Commissioner, Ahmedabad. The company has made it clear that it disagrees with this order and is preparing to take appropriate legal action against it.

Read :- Vodafone Idea gets relief from Supreme Court on AGR dues, stock market shines

According to a statutory filing by Vodafone Idea (VIL) with the stock exchange, the penalty has been imposed under Section 74 of the Central Goods and Services Tax Act, 2017. The amount of fine is ₹6,37,90,68,254 (about Rs 638 crore). The tax authority has accused the company of underpayment of tax and over-leverage of input tax credit (ITC). According to the company, the maximum financial impact could be to the extent of tax demand, interest and penalty imposed.

Interestingly, this order of GST penalty has come at a time when just a day before the company had got a big relief from the Central Government. On Wednesday, the Union Cabinet had decided to freeze the adjusted gross revenue (AGR) dues of Vodafone Idea.