GST Council to issue new telecom spectrum payment guidelines

The upcoming GST Council meeting, scheduled for June 22 in New Delhi, is expected to provide clarity for the telecom sector.

Sources, while talking to CNBC-TV18, indicated that the council may suggest the need for explicit guidelines on the timing of GST for spectrum allotment to telecom companies.

“Council could clarify for telecom companies the payment of licence fees and spectrum usage charges when paid in instalments or upfront,” they added.

Sources, speaking on condition of anonymity, shared that “the council could discuss stating that if full upfront payment is made by the telecom operator, GST would be payable when the payment is made or due, whichever is earlier. Similarly, in cases of deferred payments, telecom operators would pay GST as and when such deferred payments are due or made, whichever is earlier.”

Experts, who requested anonymity, believe this move will help the sector achieve tax certainty and clarity.

Sources further informed that the GST Council is likely to discuss GST levy on spectrum allotment to telecom companies and payment of licence fees and spectrum usage charges.

The council may also clarify that GST applies to spectrum-related payments by telecom companies on the due date or payment date, whichever is earlier. CNBCTV18