Vodafone Idea challenges significant tax penalty over input tax credit

Vodafone Idea Limited disclosed on December 22, 2025, that it has received an order from the deputy commissioner, Large Taxpayer Unit, West Bengal, under the Central Goods and Services Tax (CGST)/SGST Act, 2017. The order confirms a penalty of Rs. 4,15,51,496, along with applicable tax demand and interest. The company stated its disagreement with the order and plans to take appropriate actions for rectification or reversal.

The order pertains to alleged excess availment of Input Tax Credit and payment of tax under the wrong head. The maximum financial impact on Vodafone Idea is limited to the levied tax demand, interest, and penalty.