Vodafone Idea Faces ₹16.73 Cr GST Demand Over Alleged Excess ITC, Short Tax Payment

Debt-ridden telecom operator Vodafone Idea (VIL) has been slapped with a ₹16.73 crore Goods and Services Tax (GST) demand order for allegedly excessively availing Input Tax Credit (ITC) and short payment of taxes.

The telco has stated that it disagrees with the GST demand order and intends to take appropriate legal action to file an appeal against the tax ruling.

“The maximum financial impact is to the extent of the tax demand, interest, and penalty levied,” VIL said in a regulatory filing, confirming the tax penalty of ₹16,73,33,489, along with additional demand and interest as applicable.

This comes after a previous ₹16.96 crore GST penalty imposed on February 4, 2025, for alleged non-payment of GST under the reverse charge mechanism.

The latest GST demand order confirms a penalty of ₹16,96,94,250, along with applicable interest and tax dues.

Last year, Vodafone Idea was hit with multiple GST demand orders amounting to ₹73 crore, including tax dues, penalties, and interest. The telecom operator received nine orders from various GST offices, primarily over alleged short payment of taxes and excessive ITC claims. Vodafone Idea had refuted the claims regarding excess ITC utilization.

In January 2024, the GST department had imposed a ₹13.16 crore fine on Vodafone Idea for the "wrongful transition of CENVAT credit to the Goods and Services Tax (GST) regime."