Tata Son's Rs 1,500 crore GST demand dismissed in Docomo settlement cas
In a significant development, the adjudicating authority of the Goods and Services Tax (GST) department has dismissed a GST demand exceeding Rs 1,500 crore on Tata Sons, related to a settlement deal with the Japanese company Docomo, according to a report by the Economic Times.
Officials involved in the matter said the order could serve as a precedent for other companies engaged in arbitration. They added that the GST department still has the option to challenge the decision in the High Court.
GST demand on Tata’s settlement payment
The case began in 2019, when the Directorate General of GST Intelligence (DGGI) imposed an 18 per cent GST on the $1.27 billion paid by Tata Sons to Docomo in 2017. The payment was made to settle a dispute involving Tata Teleservices.
