Telecom operator Vodafone Idea (Vi) has been hit with a tax penalty of ₹6.47 crore by the Central GST office in Ahmedabad. The penalty was issued on charges that the company wrongly availed CENVAT credit, a tax benefit that allows businesses to claim credit for duties paid on capital goods or equipment.
According to officials, the penalty amount includes unpaid tax, interest, and the fine imposed on the company.
Vodafone Idea to Challenge the Order
In response, Vodafone Idea has stated that it disagrees with the ruling and plans to challenge the order in court. The company clarified that the financial impact includes the tax liability, interest, and the imposed penalty.
The issue comes at a time when the debt-laden telecom operator is already struggling with financial stress and is focused on raising funds to strengthen its operations and expand its 5G rollout.
Jyoti Gupta 
Irfan Alam