The GST Council is gearing up to introduce new guidelines for the timing of telecom spectrum payments during its upcoming meeting scheduled for June 22 in New Delhi.
With the primary objective of providing explicit guidelines for the timing of GST for spectrum allotment to telecom companies, the council may propose specific rules for the payment of licence fees and spectrum usage charges.
Sources familiar with the matter, speaking on condition of anonymity to CNBC-TV18, have indicated that in cases of full upfront payment by telecom operators, GST would be payable when the payment is made or due, whichever comes earlier.
Similarly, for deferred payments, telecom operators would pay GST as and when such payments are due or made, depending on which occurs earlier. This move is anticipated to enhance tax certainty and clarity within the sector, as expressed by anonymous experts.
Additionally, it is expected that the GST Council will address the GST levy on spectrum allotment to telecom companies, along with the payment of licence fees and spectrum usage charges. Furthermore, it may clarify that GST applies to spectrum-related payments by telecom companies on the due date or payment date, whichever is earlier.
Read more: New GST Guidelines for Telecom Spectrum Payments: What to Expect