Vodafone Idea receives GST Demand of Rs.16.73 Crore Over alleged Excess ITC and Short GST Payment:

Vodafone Idea receives GST Demand of Rs.16.73 Crore Over alleged Excess ITC and Short GST Payment Debt-ridden telecom operator Vodafone Idea (VIL) has received a Rs.16.73 crore GST demand order for allegedly claiming excessive Input Tax Credit (ITC) and short payment of taxes. The telco has declared that it disagrees with the GST demand order and plans to take proper legal action to file an appeal against the tax decision. In a regulatory filing, VIL confirmed the Rs.16,73,33,489 tax penalty together with additional demand and interest where applicable, stating that the greatest financial impact is to the extent of the tax demand, interest, and penalty issued. This follows a Rs.16.96 crore GST penalty that was previously levied on February 4, 2025, for allegedly failing to pay GST using the reverse charge mechanism. Last year, Vodafone Idea received multiple GST demand notices totalling Rs.73 crore, including tax dues, penalties, and interest. The telecom operator received nine orders from various GST authorities, largely for alleged underpayment of taxes and excessive ITC claims. Vodafone Idea had denied the claims of excessive ITC utilisation. In January 2024, the GST department fined Vodafone Idea Rs.13.16 crore for "wrongful transition of CENVAT credit to the Goods and Services Tax (GST) regime."