Debt-laden telco Vodafone Idea received Goods and Services Tax (GST) demand notices from several tax agencies totaling Rs 73 crore. According to a regulatory filing, the demand, which was issued by nine GST offices, contains both penalties and interest.
Vodafone Idea stated that it does not agree with the tax demands and would take additional steps to correct or reverse the decisions.
The greatest penalty among the Rs 73 crore tax requests came from the GST office in Kolkata, which imposed a demand of Rs 33.44 crore for "alleged tax short paid on outward supply, excess ITC availed".
The Noida GST office fined Vodafone Idea Rs 26.89 crore for "allegation of excess availment of ITC and short tax paid for FY 2019-20".
The Patna GST office issued 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 issued a notice for Rs 1.57 crore for "excess availment of ITC for FY 2019-20".
The Chennai GST office sought Rs 10.99 lakh for "short payment of tax and excess claim of ITC in FY 2019-20", while the Bhubaneswar GST office asked Rs 9.51 lakh for "excess claim of ITC".
Shimla GST office issued a notice for Rs 50,000 for "short tax paid in 2019-20", another for Rs 36,000 for "excess availment of ITC for FY 2019-20", and Chandigarh GST office issued a notice for Rs 4,211 for "excess availment of ITC for FY 2019-20".
Vodafone Idea indicated that the greatest financial effect of all GST requests is the amount of tax demanded plus interest and penalties charged.
Vodafone Idea shares have declined 11.42 percent in 2024, compared to a 43 percent increase on the BSE Telecommunication index during the same period. Vodafone Idea shares have risen 111% over the previous three years, compared to the BSE Telecommunication index's return of 103.80%.
Brokerages typically rate the stock as 'Neutral' or 'Hold'. They recommended price targets of Rs 15-22. Last week, foreign stockbroker Citi reportedly maintained its 'Buy' rating on Vodafone Idea with a target price of Rs 22, citing the Supreme Court's decision to consider the telecom operator's AGR curative case. Citi regards the Supreme Court's decision as a significant milestone because the case had been pending for a long time.
