GST action: Vodafone Idea gets Rs 638-crore penalty order; telco plans legal challenge

Vodafone Idea on Thursday said it has received a GST penalty order of about Rs 638 crore from the Office of the Additional Commissioner, Central Goods and Services Tax, Ahmedabad, and that it will challenge the order through legal action, PTI reported.In a statutory filing, the debt-laden telecom operator said it does not agree with the order and will take appropriate steps against it. The order was passed under Section 74 of the Central Goods and Services Tax Act, 2017, confirming a penalty of Rs 6,37,90,68,254 along with applicable tax demand and interest, the company said in a BSE filing.Vodafone Idea said the order pertains to allegations of short payment of tax and excess availment of input tax credit. “The maximum financial impact is to the extent of tax demand, interest, and penalty levied. The company does not agree with the order and will take appropriate legal action(s) against the same,” it said.The filing comes a day after the Union Cabinet approved major relief for Vodafone Idea by freezing its Adjusted Gross Revenue dues, granting a five-year moratorium on payments and allowing reassessment of capped AGR dues, PTI reported.