Time of Supply for Telecom Spectrum Allotment with Instalment Payment Option

Last updated: 28 June 2024

Save Share

Quick Summary

This notification provides clarification on the Goods and Services Tax (GST) treatment for telecom spectrum allocation when payments are made in instalments. It addresses situations where successful bidders choose a deferred payment option as per the Department of Telecommunication's Frequency Assignment Letter. The clarification aims to ensure consistent application of GST laws across all field formations.

F.No. CBIC-20001/4/2024-GST
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
GST Policy Wing
*****

North Block, New Delhi
Dated the 26th June, 2024

To,
The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/Commissioners of Central Tax (All)
The Principal Directors General/ Directors General (All)

Madam/Sir,

Subject: Clarification on time of supply of services of spectrum usage and other similar services under GST -reg.

Representations have been received from the trade and the field formations seeking clarification regarding the time of supply for payment of GST in respect of supply of spectrum allocation services in cases where the successful bidder for spectrum allocation (i.e. the telecom operator) opts for making payments in installments under deferred payment option as per Frequency Assignment Letter (FAL) issued by Department of Telecommunication (DoT), Government of India. 2. In order to clarify the issue and to ensure uniformity in the implementation of the provisions of law across the field formations, the Board, in exercise of its powers conferred by section 168 (1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to As “CGST Act”), hereby clarifies the issues as under:

For full notification please refer to the attachment.

FAQ :

This notification clarifies the time of supply for GST on telecom spectrum usage and similar services, particularly when instalment payments are involved.

Clarification was requested by the trade and field formations due to queries about the time of supply for spectrum allocation with instalment payments.

It addresses the deferred payment option where successful bidders for spectrum allocation opt to pay in instalments, as per the Frequency Assignment Letter from the Department of Telecommunication.

The purpose is to clarify the issue and ensure uniformity in the implementation of GST provisions related to spectrum payments across all field formations.

This clarification is issued by the Central Board of Indirect Taxes and Customs (CBIC) under the powers conferred by section 168 (1) of the Central Goods and Services Tax Act, 2017.

Notification No : 222/16/2024-GST
Source : https://taxinformation.cbic.gov.in/view-pdf/1003199/ENG/Circulars

Attached File : 322600_11310_circular_no_222.pdf

downloaded 5 times

180 Views Comment Share GST Report

Notification posted by

CCI News Desk

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

Comments