Vodafone Idea Shares in Focus on January 2 After Rs 637 Crore GST Penalty Demand

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Vodafone Idea has received a GST penalty demand exceeding Rs 637 crore from the Ahmedabad GST Commissioner’s office. The order alleges short payment of GST and excess claims of Input Tax Credit.

Just when Vodafone Idea’s stock had begun to show signs of revival, the telecom major has been jolted by a huge tax demand that could rattle investor confidence in the near term. The company disclosed that it has received a GST penalty order worth more than Rs 637 crore from the Ahmedabad GST Commissioner’s office, putting the stock firmly in focus for Friday’s trading session.

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What Triggered the Shock?

In an exchange filing, Vodafone Idea said the Office of the Additional Commissioner – CGST, Ahmedabad, has passed an order alleging:

  • Short payment of GST, and
  • Excess availment of Input Tax Credit (ITC).

The order has been issued under Section 74 of the CGST Act, 2017, confirming a penalty of Rs 6,37,90,68,254, along with applicable interest and tax demand.

Vodafone Idea’s Response: “We Don’t Agree”

The telecom operator has pushed back strongly against the order.

“The Company does not agree with the Order and will take appropriate legal action(s) against the same,” Vodafone Idea told stock exchanges.

It added that the maximum financial impact could extend to the full amount of tax, interest and penalty, depending on how the legal challenge plays out.

Why Investors Are Watching This Closely

The penalty comes at a time when Vodafone Idea is trying to stabilise its business and rebuild investor trust. A liability of this size, even if contested, adds fresh uncertainty to its already stretched balance sheet.

How the Stock Has Been Performing

Interestingly, the stock surged nearly 8% on Thursday, closing at Rs 11.62, even as news of the GST order broke.

Here’s how Vodafone Idea shares look on the charts:

  • 1-year return: +45%
  • 5-year return: +3.8%
  • 2025 YTD: +4%
  • Past 1 month: +17%
  • Last 5 sessions: –3.4%
  • 52-week high: Rs 12.80 (Dec 31, 2025)
  • 52-week low: Rs 6.12 (Aug 14, 2025)

The company’s market capitalisation currently stands at over Rs 1.25 lakh crore.

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