Telecom companies won’t get input tax credit refund: Sushil Modi

NEW DELHI: The Goods and Services Tax Council will reject requests by telcos for a refund of input tax credit of Rs 36,000 crore, Bihar deputy chief minister Sushil Kumar Modi told ET, dashing hopes of any financial relief for the beleaguered telecom sector.

“The GST Council has not considered this issue and even if it does come up for consideration, it will not be accepted,” said Modi, the convener of the Group of Ministers on Integrated GST. “And such a huge amount, there is no question of refund.”

Telecom service providers have been urging the government to refund the input tax credit or adjust the amount against their statutory dues. They have sent several requests to the finance ministry.

Input tax credit worth some Rs 18,000 crore for Reliance Jio Infocomm, about Rs 10,000 crore for Bharti Airtel and roughly Rs 8,000 crore for Vodafone Idea is currently with the finance ministry. The telcos are seeking a refund of taxes paid on inputs such as equipment used to provide telecom services.