Telecom companies will also need to pay GST as well to the instalments they have paid for spectrum charges. The next round of the spectrum auction for eight spectrum bands intended for mobile phone services will be held by the Department of Telecom on June 6. Rs 96,317 crore has been set as the auction’s base price.
In the upcoming mega auction, winning bidders will be able to pay in 20 equal annual installments for the 20 years that the spectrum will be assigned. According to the official, telecom companies will need to pay 18% Goods and Services Tax 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,” the official stated to PTI. Field formations will no longer be confused about how to collect GST during the auction process thanks to this clarification.
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All the available spectrum in the 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, 2,500 MHz, 3,300 MHz, and 26 GHz bands are part of the auction. The total frequencies being put under the hammer are valued at Rs 96,317 crore on base price.
According to Moore Singhi Executive Director Rajat Mohan, spectrum payment is covered by licensing services for the use of other natural resources, which are subject to an 18% tax. This is in accordance with the GST law.
Spectrum charges must be paid in stages over time, tax payments must also be spaced out. To prevent any lawsuits in this regard, the board ought to provide an explanation
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