Telecom operator Vodafone Idea disclosed that it has received a major tax order under the Goods and Services Tax (GST) law, confirming a penalty of Rs 637.9 crore along with applicable tax demand and interest.
The company said it does not agree with the order and will pursue appropriate legal remedies.
Order issued under the GST law
The order has been passed by the Office of the Additional Commissioner, Central Goods and Services Tax, Ahmedabad South, under Section 74 of the Central Goods and Services Tax Act, 2017. Section 74 relates to cases involving alleged tax short payment or wrongful availment of input tax credit due to fraud, wilful misstatement, or suppression of facts.
Vodafone Idea received the order on December 31, 2025, the company informed stock exchanges in a regulatory filing.
Allegations of tax short payment
According to the disclosure, the tax authority has alleged short payment of GST and excess availment of input tax credit by the telecom operator. Based on these allegations, the authority has confirmed a penalty amounting to Rs 6,37,90,68,254.
The total financial exposure could increase further, as the demand also includes tax and interest, the company said.
Financial Impact and Company Response
Vodafone Idea stated that the maximum financial impact would extend to the full amount of tax demand, interest, and penalty levied under the order. However, it emphasised that it strongly disagrees with the findings of the tax authority.
“The Company does not agree with the Order and will take appropriate legal action(s) against the same,” Vodafone Idea said in its exchange filing.
Vodafone Idea financials
Vodafone Idea reported a revenue from operations of 11,194.7 crore in Q2FY26, as per the company’s financials. The company also reported a loss of Rs 5,524.2 crore in the same period, marking a 23% decrease as its loss in Q2FY25 was Rs 7,175.9 crore.
Vodafone Idea Share Price
Vodafone Idea’s share price has jumped nearly 7.99% as of market closing. The stock is up over 16.9% in the last 1 month. Furthermore, it was up 44.89% in the past year.