Telecom operator Vodafone Idea (VIL) on Friday, February 28, said it has received a ₹16.73 crore Goods and Services Tax (GST) demand order from the Deputy Commissioner, Large Taxpayer Unit, West Bengal.
The telco asserted it does not agree with the order and will take appropriate action for filing an appeal against the same.
In a BSE filing on details of the order received by the company under the Central Goods and Services Tax Act, 2017, Vodafone Idea informed that the order was received on February 27, 2025.
“Order passed under Section 73 of the Central Goods and Services Tax Act, 2017, read with the West Bengal Goods and Services Tax Act, 2017, confirming a penalty of ₹16,73,33,489/- along with demand and interest as applicable,” Vodafone Idea said in a stock exchange filing on Friday.
It pertains to “alleged excess availment of input tax credit, short payment of tax, etc.,” the VIL filing said.
“The maximum financial impact is to the extent of tax demand, interest and penalty levied,” VIL further noted.
During the intraday trade, shares of the telecom company were trading 3.33% lower on Friday at ₹7.54 per share on the National Stock Exchange (NSE). The scrip closed at ₹7.57 apiece, falling 2.95%.
December quarter earnings
Vodafone Idea reported a consolidated net loss of ₹6,609.3 crore for the third quarter of the 2024-25 financial year (Q3 FY25). Its net loss stood at ₹6,985.9 crore in the corresponding period last year.
The telco’s revenue from operations stood at ₹11,117.3 crore during the quarter under review, jumping 4.16% year-on-year (YoY) from ₹10,673.1 crore registered in the December quarter of the 2023-24 fiscal year (Q3 FY24).
At the operational level, the company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) jumped 3.6% quarter-on-quarter to ₹4,712.4 crore in Q3 FY25, compared to ₹4,549.8 crore in Q2 FY25. Its margin expanded to 42.4% in the period under review versus 42.4% in the second quarter of FY25.
