Tata Tele-NTT Docomo settlement case: DGGI can send Tata Sons notice on Rs 1.5k cr claim

The Bombay High Court has allowed the goods and services tax department to issue a notice to Tata Sons for consultations on an alleged non-payment of Rs 1,500 crore in GST related to a 2017 settlement between Tata Teleservices and Japan’s NTT Docomo.

The Directorate General of GST Intelligence (DGGI) had raised the tax claim over the $1.27 billion that Tata Sons had paid to NTT Docomo on behalf of Tata Teleservices to settle their dispute over a joint venture telecom firm. Tata Sons challenged the claim, arguing that the payment was the outcome of arbitration proceedings in a London court and hence GST was not applicable. It had also sought government intervention in the matter.