Vodafone Idea Hit With Over Rs 83 Crore GST Penalties, Plans To Contest Order

Vodafone Idea Limited has informed stock exchanges that the Deputy Commissioner of State Tax, Andheri Division, Mumbai, has passed an order under Section 74 of the CGST/MGST Act, 2017, confirming a penalty of Rs 79,56,43,907 along with tax demand and interest. The order, received on 24 December 2025, relates to alleged GST demand on additional licence fees and spectrum usage charges for FY 2018–2019.

Separately, the Principal Commissioner of Central GST, Domlur, Bengaluru, has issued another order under Section 74 of the CGST Act confirming a penalty of Rs 3,58,23,621, again with tax demand and interest. This second order alleges short payment of tax and excess input tax credit claimed between FY 2018–2019 and FY 2022–2023. Vodafone Idea has clarified that it disagrees with both orders and will pursue appropriate legal remedies, noting that the maximum financial exposure is limited to the tax, interest and penalties levied.

Key Highlights

• Authority one: Deputy Commissioner of State Tax, Andheri Division, Mumbai; penalty of Rs 79.56 crore under Section 74 of CGST/MGST Act.​
• Issue: Alleged GST demand on additional licence fee and spectrum usage charges for FY 2018–2019.
• ​Authority two: Principal Commissioner of Central GST, Domlur, Bengaluru; penalty of Rs 3.58 crore under Section 74 of CGST Act.
• ​Issue: Alleged short payment of tax and excess ITC from FY 2018–2019 to FY 2022–2023.
• ​Company stance: Does not agree with the orders; to seek rectification or reversal through appropriate legal actions, with exposure capped at tax, interest and penalties demanded.

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Sources: Vodafone Idea Limited disclosure to NSE and BSE dated 25 December 2025, including Annexure A detailing GST orders.
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