Telecom operators have to pay GST on spectrum along with payment: CBIC
Telecom operators will have to pay goods and services tax (GST) on spectrum, based on their payment schedule, the Central Board of Indirect Taxes and Customs (CBIC) has said. In cases where the full upfront payment is made by the telecom operator, GST would be payable when the payment of the said upfront amount is made or is due, whichever is earlier, the CBIC has said.
In other cases, where deferred payments made by the telecom operator in specified installments, GST would be payable as and when the payments are due or made, whichever is earlier, it has further said.
The clarification by the CBIC follows the GST Council meet on June 22, where it had decided a clarification would be made regarding time of supply in respect to the allotment of spectrum to telecom companies, in cases where payment of licence fee and spectrum usage charges is to be made in installments. A GST of 18% is to be levied.
The latest round of spectrum auctions started on June 25 and concluded on June 26 after seven rounds, in which the expiring spectrum in 2024 and the unsold spectrum of previous spectrum bid, held in 2022, were put to auction.
