By- Divyanshi Sinha
Vodafone Idea reeled under a ₹638 crore GST penalty plus ₹212 crore interest slapped by Maharashtra authorities on April 7, accusing the telco of wrongly claiming input tax credits on tower infrastructure rentals—escalating AGR dues crisis as 5G rollout stalls amid Hormuz diesel hikes crimping capex. The April 2025 notice, upheld post-appeals, targets FY20-23 discounts passed to BSNL via interconnection usage charges (IUC), deemed "deemed supply" ineligible for ITC.
Vi's 180 million Mumbai-Maharashtra subs face hikes: prepaid packs eyed at 12% jump to fund dues, ARPU target slips to ₹195 from Jio's ₹230. Shares tanked 6.8% to ₹12.45, Nifty Telecom down 3.2%, erasing ₹15,000 crore mcap. CEO Akshaya Moondra slams "retrospective tax terrorism," plans Supreme Court escalation mirroring Bharti's 2019 win. Aditya Birla Group's ₹20,000 crore rights issue hangs by thread as banks balk post-penalty.
Industry tremors: Jio-Airtel duopoly tightens, Vi market share dips to 16% nationally. Positive spin—5G spectrum auction deferred to July aids cash burn at ₹70,000 crore FY26. Govt 3-year AGR moratorium whispers offer lifeline, but penalties compound to ₹75,000 crore total. For Bandra recharges, expect tower blackspots worsen before 5G dreams. Vi fights not for survival—for telecom's level playing field when giants feast.
