In a recent development, Vodafone Idea Limited (VIL) disclosed receiving an order under the Central Goods and Services Tax Act, 2017, imposing a penalty of Rs 10.76 crore. The telecom giant, expressing disagreement with the order, declared its intention to contest the penalty and seek rectification.
The penalty amount of Rs 10,76,56,733 was specified in the order dated January 3, 2024, according to Vodafone Idea.
The alleged contravention pertains to the “improper transfer of CENVAT credit to the GST regime,” as stated by VIL.
In response to this penalty, Vodafone Idea emphasized its commitment to take appropriate actions to rectify and reverse the order.
Vodafone Idea, grappling with challenges in the telecom sector, recently witnessed a loss of 20.4 lakh wireless users in October, as reported by the Telecom Authority of India (TRAI). The telecom company, holding a 19.59 percent market share, reported a loss of users, further complicating its standing in the competitive market.
The telecom company’s financial struggles were evident in its losses widening to Rs 8,737.9 crore for the quarter ended September. Despite a nearly 1 percent increase in revenue from operations, reaching Rs 10,716.3 crore, Vodafone Idea faced an uphill battle in maintaining financial stability.
Vodafone Idea had earlier announced that its promoters would infuse up to Rs 2,000 crore by the end of the December quarter, showcasing efforts to address financial challenges.
