The Goods and Service Tax Appellate Authority has significantly reduced Bharti Airtel’s GST demand from ₹604.66 crore to ₹194 crore. This decision follows an appeal by Bharti Airtel, challenging the initial assessment made by the tax authorities.
The case revolves around a demand for Goods and Service Tax (GST) amounting to ₹604.66 crore, which was levied by the GST Department. This demand was made under the reverse charge mechanism, concerning the license fee and spectrum usage charges, based on a demand note issued by the Department of Telecommunications (DoT).
Upon receiving this hefty demand, Bharti Airtel took the matter to the Appellate Authority by filing an appeal. The Appellate Authority, after reviewing the appeal, issued an order reducing the original GST demand to ₹194 crore, marking a substantial decrease from the amount initially assessed.
In a regulatory filing on Thursday, Bharti Airtel informed that they received the order on August 21. The company is currently in the process of assessing the implications of the Appellate Authority’s order. Bharti Airtel further stated that it will take the appropriate actions after completing this assessment.
This reduction in the GST demand is a significant development for Bharti Airtel, as it greatly lessens the financial burden originally placed on the company by the GST Department. The company will now proceed with a thorough evaluation of the order to determine the next steps in addressing the situation.
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