Telecos need to pay 18% GST on spectrum charges
DoT will hold next round of spectrum auction on June 6 for 8 spectrum bands
New Delhi: Telecom companies will have to pay GST along with the installments paid towards spectrum charges, a senior official said.
Department of Telecom (DoT) will hold the next round of spectrum auction on June 6 for eight spectrum bands meant for mobile phone services. The base price for the auction has been set at Rs96,317 crore.
The spectrum will be assigned for 20 years and successful bidders will be allowed to make payments in 20 equal annual installments in the coming mega auction. The official said Goods and Services Tax (GST) will have to be paid at 18 per cent by telecom companies along with each installment. “The GST Council in its next meeting is likely to clarify the procedure for payment of GST by companies winning the bids during the spectrum auction,” said official.
