Bharti Airtel has got a big relief from the Central Appellate Tribunal in the case of huge GST demand. The company will now have to pay only Rs 194 crore instead of about Rs 600 crore.
The Delhi-based GST Appellate Tribunal has directed the company to pay GST of Rs 194 crore on license fee and spectrum use charge to the Telecom Department.
Appeal against tax demand
This case is related to the tax demand of Rs 604.66 crore of the GST Department under the reverse charge mechanism on license fee (LF) and spectrum use charge (SUC) on the basis of GST demand notice issued by the Department of Telecommunications. The company had filed an appeal against this order before the Central GST Appellate Tribunal, Delhi.
Big relief for Airtel
Airtel said in an exchange filing given to the stock market on Thursday that on the company’s appeal before the Appellate Commissioner, Delhi, the tribunal has passed an order reducing the tax demand to Rs 194 crore.
The company said that it received this order on August 21. The company is assessing the impact of this order and will follow the appropriate procedure on this.