Vodafone Idea Fined Over GST Compliance Issues

Vodafone Idea has been ordered by the GST office in Patna to pay ₹15.19 crore in taxes and a penalty of ₹1.51 crore due to allegedly claiming ineligible input tax credits for the financial years 2019-20 and 2020-21. The order was issued under the Central Goods and Services Tax Act, 2017, and Vodafone Idea disputes this ruling, stating it plans to take legal action against the decision. The company has communicated that the maximum financial impact will be limited to the tax demand, interest, and penalty imposed. This order was received on August 28 and reflects ongoing challenges for the debt-ridden telecom firm. Vodafone Idea's board had previously approved a plan to raise up to ₹20,000 crore in February 2024 as part of its financial recovery strategy. The situation highlights the company's struggles amid regulatory scrutiny and financial pressures.