The Indian Telecom tower assembly has asked the telecom department along with the finance ministry to include the towers inside the items liable to claim the input tax credit beneath the GST act.
T.R.Dua, Director-General, Tower and Infrastructure Providers Association (TAIPA) comments “Currently, the telecom infrastructure providers can not avail of the Input Tax credit against GST paid by them on telecom towers, which acts as an impediment to make further investments,”
“Although under the Central Goods and Services Tax Act, 2017 (“CGST Act”), GST credit is available for plant and machinery, but Telecommunication towers have been specifically excluded from the definition of plant and machinery provided in Explanation to Section 17 of the CGST Act. It would be pertinent to note that the draft GST bill had envisaged provision of the input tax credit on telecom towers; however, this provision was removed in the GST Act, 2017,” he added.
As per the non-availability of the ITC 
Have a look on goods and services that are not eligible to claim (ITC) input tax credit. We have showcased a complete list with their brief exceptions. Read more, the industry urges to sustain the losses of Rs 1.25 Lakh -1.5 Lakh per tower.
Thus, during the last 4-5 years, the Industry has already lost Rs 2500 Cr of ITC so far. Going forward, the demand for telecom towers is likely to cross 50,000 towers on account of 5G, etc, which will lead to an additional loss of Rs 625 Cr to the Industry,” said the council.
The highest authority writes to Ms. Aprajita Sharma, DDG(BPF), Department of Telecommunications (DoT) urging to give assistance concerning the issue of non-availability of the input tax credit on the telecom towers.
Moreover, the problem has arisen through TAIPA while this earlier meeting held on 6th Jan 2021, so this will lead up with the Finance ministry before the attainment of the yearly budget.
“Hence, the industry has been requesting for the inclusion of telecom tower under the definition of Plant and Machinery so that Input Tax Credit can be made available on telecom towers, since the last 4-5 years.”
