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The company received the order on August 21 and is currently evaluating its implications before deciding on further action
According to a regulatory filing on Thursday, Bharti Airtel has been ordered by the Goods and Service Tax (GST) Appellate Authority to settle ₹194 crore in GST on license charges and spectrum usage expenses. This ruling follows an earlier demand by the GST Department for ₹604.66 crore under the reverse charge mechanism, based on the license fee (LF) and spectrum usage charges (SUC) outlined by the Department of Telecommunications.
Bharti Airtel had initially contested the GST Department's demand, leading to the appeal before the Central Goods and Service Tax Appellate Authority, Delhi. The appeal resulted in the reduction of the original demand to ₹194 crore. The company received the order on August 21 and is currently evaluating its implications before deciding on further action. This ruling underscores the ongoing scrutiny faced by telecom operators over their financial obligations related to licensing and spectrum usage, with significant tax implications. Bharti Airtel, one of India's largest telecom operators, must now navigate the financial and regulatory impact of this reduced but still substantial tax liability.
As the company assesses the ruling, the broader telecom industry will likely watch closely, given the potential precedents this decision could set for similar cases. The outcome could influence the financial strategies of telecom operators in managing their tax responsibilities related to government-issued licenses and spectrum usage.
The Goods and Service Tax (GST) Appellate Authority has directed Bharti Airtel to pay ₹194 crore in GST on license fees and spectrum usage charges, as per a regulatory filing on Thursday.
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