The Department of Telecommunications will ask the finance ministry to refer the pending issue of refunding input tax credits of telecom companies worth Rs 36,000 crore to the GST Council, a move that could provide further relief to Vodafone Idea and Bharti Airtel NSE -1.33 % . One official said wider consultations are needed on the matter of reducing licence fees for telcos and this includes the impact of their planned tariff increases. “The department will take up this matter of input tax credit offset with the finance ministry now. It has to eventually go to the GST Council,” a senior telecom department official told ET.
The Committee of Secretaries headed by Cabinet Secretary Rajiv Gauba, which is evaluating steps to restore the health of the sector, had suggested that Goods & Services Tax issues should be resolved by the GST Council, ET reported in its November 13 edition. The telecom industry has been urging the government to refund the input tax credits or adjust them against spectrum dues.
Input tax credit worth some Rs 18,000 crore for Reliance Jio, about Rs 10,000 crore for Bharti Airtel and roughly Rs 8,000 crore for Vodafone Idea are currently stuck with the finance ministry. The government on Wednesday approved a moratorium on spectrum payments for 2020-21 and 2021-2022, enabling Vodafone Idea and Airtel to get a cashflow boost of about Rs 35,000 crore.
Read more at: https://economictimes.indiatimes.com/industry/telecom/telecom-news/dot-to-take-up-rs-36000-crore-itc-refund-with-finance-