Tata Sons may face Rs 1.5K cr GST on Docomo payout

New Delhi: Tata Sons may be staring at a tax demand of over Rs 1,500 crore related to its settlement with former telecom venture partner NTT Docomo following an investigation by the Goods and Services Tax authorities, a senior government official told ET .

The Directorate General of GST Intelligence is probing Tata Sons’ $1.2-billion payment to NTT Docomo in 2017 following the settlement reached in a three-year dispute over the Japanese company’s exit from Tata Teleservices.

Both sides agreed to implement an arbitration award that required the Tata Group to pay Docomo for its 26.5% stake in the joint venture and allow it to exit. The GST authorities are investigating the payment made on account of this settlement, the official said.