Vodafone-Idea
The central government first gave relief on AGR dues on Wednesday to save the country’s third largest telecom company Vi. According to the latest decision of the government, the AGR dues hanging over Vodafone-Idea have been frozen at Rs 87,695 crore. The company will not have to worry about repaying this money for the next five years. The government has given it a moratorium of five years. However, even after this the company’s problems did not reduce. The company said in the filing that it has received a GST notice of Rs 638 crore, against which it will appeal in the court.
Telecom operator Vodafone Idea (VIL) on Thursday said it has received a GST penalty order of about Rs 638 crore from the office of the Additional Commissioner, Central Goods and Services Tax, Ahmedabad. In a regulatory filing, Vodafone Idea said that it does not agree with this order and will take legal action against it.
The filing comes just a day after the debt-laden telecom company got a major relief on adjusted gross revenue (AGR) dues when the Union Cabinet on Wednesday decided to freeze its dues with a 5-year payment moratorium and allow reassessment of capped AGR dues.
GST penalty order
In a BSE filing on Thursday, VIL said an order has been passed under Section 74 of the Central Goods and Services Tax Act, 2017, confirming a penalty of Rs 6,37,90,68,254 along with applicable demand and interest. VIL said the order has come from the office of the Additional Commissioner, Central Goods and Services Tax, Ahmedabad and was received on Wednesday and pertains to “allegations of underpayment of tax and excessive utilization of input tax credit”.
Vodafone Idea said that the maximum financial impact will be limited to tax demand, interest and penalty imposed. The company does not agree with this order and will take appropriate legal action against it.
Also read- After the slowness of November, UPI made a strong comeback, shocking figures came out.