Appellate Authority reduces Bharti Airtel’s GST demand to Rs 194 crore from Rs 604 crore

The multinational Indian provider of telecommunications services, Bharti Airtel Limited, has its headquarters in New Delhi. It works in the Channel Islands and eighteen other countries in South Asia and Africa. Airtel currently covers all of India with 5G, 4G, and LTE Advanced services. Regarding its corresponding services in the telecom sector, it is among the most formidable rivals of Reliance JIO. In terms of revenue, that amounts to Rs. 1.51 lakh crores in 2024.

GST reduced to Rs. 194 crore from 604.66 crore:

According to a regulatory filing on Thursday, Bharti Airtel was ordered by the Goods and Service Tax Appellate Authority to pay Rs 194 crore in GST on licence fees and spectrum usage charges that were requested by the Department of Telecom.

In an exchange filing on the BSE, it was stated that Bharti Airtel Ltd. filed an appeal with the Commissioner (Appeals) of the Central Goods and Service Tax Appellate Authority in Delhi, leading to the correction of its goods and services tax (GST) demand of Rs 604.66 crore to Rs 194 crore.
The demand was formally submitted under the reverse charge mechanism on license fees and spectrum usage charges by the Additional Commissioner, Adjudication of Central Goods and Service Tax in Delhi. A notification from the Department of Telecommunications served as the foundation for the demand. The company received the order on August 21. It is currently evaluating the appeal order’s implications and will take the necessary action.

Bharti Airtel stocks rise intraday:

The news that the GST demand has been lowered to just Rs. 194 crore from Rs. 604.66 crore earlier has caused the stock price of Bharti Airtel to move slowly but steadily in the intraday segment. The price per share of the stock is currently Rs. 1,495.60 in intraday trading.

Conclusion: Bharti Airtel successfully challenged the higher GST, and as a result, the GST was directly lowered from Rs. 604.66 crore to Rs. 194 crore. This is advantageous for them.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.