The GST Council is set to issue new guidelines regarding the timing of telecom spectrum payments, with the upcoming meeting scheduled for June 22 in New Delhi. Discussions with sources have indicated that the council aims to bring clarity to the telecom sector by providing explicit guidelines on the timing of GST for spectrum allotment to telecom companies.
According to sources speaking to CNBC-TV18 on condition of anonymity, the council may propose specific guidelines for the payment of licence fees and spectrum usage charges, particularly when paid in instalments or upfront. In cases where full upfront payment is made by telecom operators, it is anticipated that 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 deferred payments are due or made, whichever is earlier.
Anonymous experts have expressed the belief that this anticipated move will contribute to enhancing tax certainty and clarity within the sector.
Furthermore, sources have indicated that the GST Council is likely to discuss the GST levy on spectrum allotment to telecom companies, as well as the payment of licence fees and spectrum usage charges. It is also expected that the council may clarify that GST applies to spectrum-related payments by telecom companies on the due date or payment date, whichever is earlier.