Vodafone Idea receives nine GST demand notices for Rs 73 crore

Debt-ridden telecom Vodafone Idea was slapped with Goods and Services Tax (GST) demand notices from various tax offices to the tune of Rs 73 crore. According to a regulatory filing, the demand includes penalty and interest, issued by nine GST offices. 

Vodafone Idea said that it does not agree with the tax demands and would take further actions to rectify or reverse the orders.

Of the Rs 73 crore tax demands, the highest penalty came from the GST office in Kolkata that slapped a demand of Rs 33.44 crore for “alleged tax short paid on outward supply, excess ITC availed”. 

The Noida GST office slapped a fine of Rs 26.89 crore on Vodafone Idea over “allegation of excess availment of ITC and short tax paid for FY 2019-20”.

The Patna GST office ordered a tax demand of Rs 10.94 crore for “availment of excess input tax credit and short payment of tax for FY 2019-20”, while the Andhra Pradesh GST office slapped a notice for Rs 1.57 crore for “excess availment of ITC for FY 2019-20”. 

The Chennai GST office demanded Rs 10.99 lakh for “short payment of tax and excess claim of ITC in FY 2019-20”, while Bhubaneswar GST office ordered Rs 9.51 lakh for “excess claim of ITC”. 

Shimla GST office slapped a notice for Rs 50,000 for “short tax paid in 2019-20”, and another one for Rs 36,000 for “excess availment of ITC for FY 2019-20”, and Chandigarh GST office slapped a notice for Rs 4,211 for “excess availment of ITC for FY 2019-20”.

For all the GST demands, Vodafone Idea stated that the maximum financial impact is to the extent of tax demand, interest and penalty levied. 

Vodafone Idea shares have fallen 11.42 per cent in 2024 so far against a 43 per cent surge in the BSE Telecommunication index during the same period. In the last three years, Vodafone Idea shares have rallied 111 per cent against the BSE Telecommunication index's 103.80 per cent return.

Brokerages largely have 'Neutral' or 'Hold' rating on the stock. They suggested price targets in the Rs 15-22 range. Foreign brokerage Citi last week reportedly maintained its 'Buy' rating on Vodafone Idea with a target price of Rs 22, saying the Supreme Court has finally agreed to hear the telecom operator's AGR curative petition. Citi sees the SC's move as a material development as the matter has been long pending.