Vodafone Idea Share Price in Focus; Receives ₹638 Crore GST Penalty Order

Vodafone Idea has received a significant GST-related penalty order, adding to its existing regulatory and financial challenges. 

While the company has stated its intent to pursue legal remedies, the development comes alongside ongoing discussions around government relief on adjusted gross revenue dues. 

GST Penalty Order and Company Response

Vodafone Idea disclosed that it has received a penalty order amounting to ₹637.91 crore from the Office of the Additional Commissioner, Central Goods and Services Tax, Ahmedabad South. 

The order was issued under Section 74 of the CGST Act, 2017, and includes a tax demand along with applicable interest and penalties. The company received the order on December 31, 2025.

According to the filing, the matter relates to alleged short payment of tax and excess utilisation of input tax credit. Vodafone Idea has stated that it does not agree with the findings and intends to pursue appropriate legal remedies. 

The potential financial exposure would depend on the final outcome of the proceedings.

Government Relief on AGR Dues

In parallel, the central government has approved measures aimed at providing relief to Vodafone Idea on its outstanding adjusted gross revenue dues. 

These include freezing statutory dues amounting to ₹87,695 crore as of December 31 and granting a five-year moratorium on payments. 

However, the company has informed stock exchanges that it has not yet received formal communication confirming these measures.

Officials have indicated that the frozen dues may be repaid over a ten-year period starting from FY 2031–32, subject to reassessment by the Department of Telecommunications. Such reassessment could potentially reduce the final payable amount.

Treatment of Pending AGR Liabilities

AGR dues relating to FY 2017–18 and FY 2018–19 are expected to remain payable by Vodafone Idea over the next five years, from FY 2025–26 to FY 2030–31.

Earlier, a four-year moratorium covering dues up to FY 2018–19 was granted in September 2021, which is set to expire in the current financial year.

Separately, the government has already converted a portion of AGR dues into equity, resulting in a 49% in Vodafone Idea. The remaining shareholding is held by the Aditya Birla Group and Vodafone Group Plc.

Background of the AGR Dispute

The AGR issue originates from a Supreme Court ruling in October 2019 that upheld the government’s definition of adjusted gross revenue, covering dues up to FY 2016–17.

Subsequent assessments led to additional demands for later financial years. 

Read More: Shakti Pumps Share Price in Focus; Secures ₹67.32 Crore Solar Pump Order Under PM-KUSUM Scheme.

Vi Share Price Performance

Vodafone Idea Limited’s share price was ₹12, reflecting an intraday gain of ₹0.40 or approximately 3.45% compared with the previous close of ₹11.60. 

During the session, the stock traded in a relatively narrow band, with an opening price of ₹11.72, an intraday high of ₹11.96 and a low of ₹11.64.

Conclusion

The GST penalty order adds another layer of complexity to Vodafone Idea’s regulatory landscape. While the company plans to contest the order, clarity on AGR relief measures could influence its financial stability and ability to raise fresh capital. 

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