In a press release today, it was clarified that the Telecom Companies, who have been allotted Spectrum auction 2016 can avail remaining 2/3rd Cenvat Credit under the new tax regime.
Cenvat Credit Rules have been amended this year so as to provide that Cenvat credit in respect of such services which remains unavailed on the day immediately preceding the ‘appointed day’ may be availed of in full on that very day. Appointed day means the day when Central GST comes into effect.
It was stated that “the amendment would 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, scheduled to roll out on 1st July, 2017.”
