Vodafone Idea shares rally 4% as telecom firm to take legal action against ₹638 crore GST notice

The penalty worth ₹638 crore was issued from the Office of Additional Commissioner, Central Goods and Service Tax, Ahmedabad, on Thursday, January 1.  

“An order was passed under Section 74 of the Central Goods and Services Tax Act, 2017, confirming a penalty of Rs. 6,37,90,68,254/- along with the demand and interest as applicable,” the company said in a regulatory filing.

However, Vodafone Idea said it does not agree with the order and will take appropriate legal action against the same. The company further said that the maximum financial impact would be limited to the tax demand, along with the applicable interest and penalty levied.

The debt-laden firm on December 31 had said that it will receive around ₹5,836 crore from Vodafone Group as part of the resettlement of a liability claim pact between the two companies, according to regulatory filings of both companies.

Under the revised agreement, Vodafone Group promoters will release ₹2,307 crore over the next 12 months for Vodafone Idea as per the terms agreed in the amendment agreement.

Vodafone Group has also set aside its 328 crore shares held in Vi for the company’s benefit. Under the amended agreement, Vi will have the right to instruct Vodafone to sell these shares in one or more tranches, with the cash proceeds to be transferred to Vodafone Idea.

As of the date of the amendment, the market value of the earmarked shares stood at ₹3,529 crore, the company said in a filing.

AGR dues freeze buzz

However, Vodafone Idea later clarified in a statement and said, “We have not received any communication from the Government in relation to the above-reported matter. As and when there is any development which requires disclosure, we will do the needful.”

Vodafone Idea share price

At 9:52 AM, Vodafone Idea shares were trading at ₹11.97 apiece on the National Stock Exchange, surging 3.19%.

In the last five trading sessions, Vodafone Idea shares have declined 3%, while for six months’ time, they have gained 56%. The shares have climbed 45% on a year-on-year basis.

Shares of the firm had touched their one-year high of ₹12.8 apiece on December 31, 2025, while their 52-week low of ₹6.12 was hit on August 14, 2025.

The telecom company has a market capitalisation of ₹1.26 lakh crore.