GST: Telcos can carry forward unavailed Cenvat credit
The Revenue Department amended the Cenvat Credit Rules, 2004, to telcos to carry forward such unavailed credit of Service Tax under GST.
New Delhi: The Finance Ministry today said telecom companies will be permitted to carry forward unavailed Cenvat credit to the 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 Goods and Services Tax (GST) from July 1. GST will subsume excise, service tax, VAT and other local levies.