Vodafone Idea Limited announced that it has received an order under the Central Goods and Services Tax (CGST) Act, confirming a tax demand along with penalties and interest. Despite this development, the company’s shares continued to trade higher.
In a filing to the exchanges, the telecom operator said the order was issued by the Assistant Commissioner (ST), Sholinganallur, Tamil Nadu, under Section 73 of the CGST Act. The order, received on November 13, pertains to alleged claims of ineligible input tax credit. Vodafone Idea clarified that it disagrees with the findings and plans to challenge the order through appropriate legal channels, including an appeal.
The firm noted that the financial impact would be limited to the tax demand, interest, and penalties imposed. Vodafone Idea’s stock has shown strong momentum in the short term, delivering gains across multiple time periods. The stock has risen 30.7% over the past month, while its six-month performance reflects an increase of 56.73%. On a year-to-date basis, the shares are up 36.41%. Over longer durations, the stock has gained 49.05% in the past year, 28.71% over three years, and 20% in the last five years.