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Tata Group moves Bombay HC against Rs 1,500-crore GST claim on Docomo deal

Tata Group has approached the Bombay High Court seeking to contest a Rs 1,500-crore goods and services tax (GST) notice from the Directorate General of GST Intelligence (DGGI). The claim relates to a 2017 dispute settlement with NTT Docomo, sources told The Economic Times.

After approaching the government to mediate, Tata Sons has now tapped the high court through a writ petition to challenge the Rs 1,500 crore claimed on GST liabilities on its payments to Docomo, as per the report. Tata had settled $1.27 billion in payments to the Japanese telco in 2017.

Tata approached the court in November under Article 226, and the hearing is scheduled on January 9, the report added.

Sources told the daily that DGGI is “intent on pursuing the case” and has sent the company an intimation on tax as established through the DRC-01 A form. This comes prior to a ‘show-cause’ notice.

The company has on its part claimed that the settlement was reached in a London court and hence GST was not applicable. A senior official told the paper that “it is an arbitration case that was paid and closed”.

DGGI has levied its claim as per Schedule 2 of the CGST Act, which treats the payment of loans as a service rendered. And a senior official said Tata Sons is thus liable to pay 18 percent GST on behalf of Tata Teleservices. Moneycontrol

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