Vodafone Idea Limited (Vi) has notified the stock exchanges that it has received an order under the Central Goods and Services Tax (CGST) Act, 2017, imposing a penalty of nearly Rs 4 million, along with the applicable tax demand and interest.
In a regulatory disclosure filed under Regulation 30 of the Securities and Exchange Board of India (listing obligations and disclosure requirements) Regulations, 2015, the company said the order was issued by the Joint Commissioner, State Tax, Circle-C, Jaipur II, Rajasthan, under Section 74 of the CGST/RGST Act, 2017.
The order relates to the assessment year 2018-19 and concerns the alleged availing of input tax credit from suppliers whose GST registrations were cancelled ab initio.
Additionally, Vi said it does not concur with the order and intends to pursue appropriate legal remedies for rectification or reversal of the demand. The company added that the maximum financial exposure would be restricted to the tax demand, interest and penalty specified in the order.
