SC upholds HC ruling on input tax credit for telecom towers

New Delhi: The Supreme Court on Friday upheld a Delhi High Court’s December ruling that favoured Bharti Airtel and Indus Tower, holding that telecom towers qualify as “movable” property and thus eligible for input tax credit (ITC) under the tax laws.

Reaffirming pre-GST position on mobile towers ceasing to be an ‘immovable property,’ a bench of Justice Pankaj Mithal and Justice Prasanna B Varale dismissed the income tax department’s appeal and upheld the HC’s December 12 decision that held that telecom towers fall within the scope of plant and machinery and do not fall within the ambit of Section 17(5)(d) of the Central Goods and Services Tax Act, 2017, and therefore, were eligible for ITC.