Telcos can carry forward unavailed Cenvat credit to GST: finance ministry
The revenue department amends the Cenvat Credit Rules, 2004, to enable telcos to carry forward unavailed Cenvat credit under the GST
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New Delhi: The finance ministry on Wednesday said telecom companies will be permitted to carry forward unavailed Cenvat credit to the goods and services tax (GST) regime, giving a major relief to the operators already battling high debt.
The revenue department through a notification has amended the Cenvat Credit Rules, 2004, to enable service recipients to carry forward such unavailed credit of Service Tax under the GST regime.
“As a result, telecom service providers who have been allotted spectrum in auction conducted in 2016 and have already availed one-third credit in respect of Service Tax paid by them, during 2016-17, would be eligible to take the remaining two-thirds credit pertaining to 2016-17 in the GST regime,” a finance ministry statement said.
The government proposes to roll out the GST from 1 July. GST will subsume excise, service tax, VAT and other local levies.