SC Hands Telecom Sector Big GST Victory, Rejects Centre's Plea
What Happened
The Supreme Court has dismissed the Centre's review petitions against its earlier ruling that allowed Bharti Airtel and other telecom companies to claim Input Tax Credit (ITC) on telecom towers under the GST regime. The court found no error in its previous order and refused to reconsider the matter. The ruling reinforces the legal position that telecom towers qualify as "plant and machinery", making them eligible for GST input tax credit. The government had argued that towers are immovable property and therefore should not qualify for ITC, but the courts rejected that view.
Key Takeaways
The verdict is a major win for Bharti Airtel, Indus Towers and the telecom industry, providing tax certainty and protecting companies' ability to claim GST credits on network infrastructure investments.