Vodafone Idea disagrees with GST penalty; largecap telecom stock bucks market trend

Vodafone Idea Stock Price, Vodafone Idea News: Vodafone Idea said on Wednesday that it didn't agree with a Goods and Services Tax (GST)-related penalty to the tune of Rs 97.2 lakh, after the Chandigarh authority of the indirect tax alleged that the telecom firm had availaed excess input tax credit (ITC) for the financial year 2020-21. Private sector telecom service provider Vodafone Idea's strong rebuttal sent its shares jumping in intraday trade on stock exchanges BSE and NSE.

Vodafone Idea News | Telecom company rebuts Rs 97 lakh GST penalty order

Vodafone Idea said it received the order from the Commercial Tax Officer, Chandigard, on February 18.

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The order cited the "allegation of excess availment of Input Tax Credit and others for FY 2020-21", according to the telecom operator.

Vodafone Idea also said that the maximum financial impact of the said order is to the extent of tax demand, interest and penalty levied, stating that it "does not agree with the Order and will take appropriate action(s) for rectification/ reversal of the same".

How Vodafone Idea shares reacted

Vodafone Idea shares, which turned green shortly after a muted start to the session, continued to see strong buying interest after the news.

The Vodafone Idea stock—traded with the symbol IDEA on BSE and NSE—rose as much as 4.0 per cent to Rs 8.39 apiece on BSE and NSE each.

Shares held on to more than half of their intraday gains at the closing bell, settling 2.7 per cent higher for the day at Rs 8.29 apiece on BSE.

Vodafone Idea Share Price History: How largecap telecom stock has fared in the last 1 year

As of Wednesday, Vodafone Idea shares have gyrated in a range of Rs 6.6-19.2 apiece in the past one year.

At the current level, the largecap telecom stock has lost 48.3 per cent of its value during this period, underperforming gains of 4.4 per cent and 8.6 per cent in the Sensex and S&P Telecom indices respectively.

How analysts view Vodafone Idea stock

Most analysts have a bearish outlook on the Vodafone Idea stock.

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