Vodafone Idea Fined ₹6.47 Crore by GST Commissioner

22 Sep 2025 , 12:23 PM

Vodafone Idea Limited has been hit with a penalty of ₹6.47 crore by the Principal Commissioner of Central GST in Ahmedabad. The order relates to what authorities described as the “incorrect availing of CENVAT credit on capital goods.”

According to the ruling, the penalty has been imposed under Rule 15(3) of the CENVAT Credit Rules, 2004, along with Section 78(1) of the Finance Act, 1994. The total demand includes tax, interest, and penalty.

In a filing to the stock exchanges, Vodafone Idea acknowledged the order but stressed that it disagrees with the findings. The company said it intends to file an appeal against the penalty.

CENVAT, or Central Value Added Tax, was a mechanism that allowed manufacturers and service providers to claim credit on excise duty payments. Though GST has subsumed most indirect taxes, legacy cases from the earlier regime continue to come up in tax disputes.

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