Bharti Airtel, Vodafone India, Idea Cellular and Reliance Jio Infocomm are those telecom companies who had recently received notices from the department of GST for claiming exaggerated input tax credit claims.
The officials from the GST department had confirmed the development and mentioned that notice had been served to all the big telecom companies including the tower companies for claiming extra transitional credit for the expenditure capital under GST.
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It is suspected that these companies may have taken claims on transitional credit where they were not eligible on some cases of capital expenditure which have been incurred before July 1st, 2017 i.e. the date of GST implementation.
The illegal matter was testified by officials in a statement, “In some cases, companies had completed 90% of the work but that did not reflect on their books. But 100% of the capital expenditure came on their books after July 1 as they can claim credit.”
According to the reports, the total credit claimed was 4000 crores which were later disallowed by the tax department for being illegal. The average credit claimed was around 800 to 1000 crore for each telecom company.
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