Bharti Airtel’s shares were sliding on Thursday after the company said it had received a ₹2.43 crore goods and services tax (GST) penalty from the Joint Commissioner-CGST, Central Excise & CGST Commissionerate, Jaipur.
What Happened: Airtel said in an exchange filing that its Jaipur office received the claim on September 12. The company also said had delayed the disclosure because it was “confirming the facts, analysing the Order/ determining further steps and its impact”.
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The country’s second-largest telecom player said the penalty was levied in relation to “Disallowance of credit claimed by the Company in TRAN-1 being irregular.” The GST TRAN-1 is a transition form for registered taxpayers in old schemes to avail of their previous input tax credit accumulated from stock purchased before the implementation of the GST.
Airtel said it would challenge the order at the appellate forum and that there would be no material impact of the penalty on its financial, operational or other activities.
Price Action: Airtel’s share price was down 0.42% at ₹911.10 in early morning trade on Friday.
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