Ahmedabad: Telecom operator Vodafone Idea (VI) has received a GST penalty order of ₹638 crore from the Office of the Additional Commissioner, Central Goods and Services Tax (CGST), Ahmedabad.

The development comes a day after the debt-laden telco received significant relief on its Adjusted Gross Revenue (AGR) dues, with the Union Cabinet approving a freeze on the dues, a five-year moratorium on payments, and permitting reassessment of capped AGR liabilities.

Detailing the order, the company said it was issued under Section 74 of the Central Goods and Services Tax Act, 2017, confirming a penalty of ₹6,37,90,68,254, along with applicable tax demand and interest. The order, received on Wednesday, was issued by the CGST Additional Commissioner in Ahmedabad and relates to allegations of short payment of tax and excess availing of input tax credit.

In a statutory filing, VI said the potential financial impact includes tax demand, interest and penalties, but added that it does not agree with the order and will pursue appropriate legal remedies. DeshGujarat