Commissioner Vs Bharti Airtel Limited Etc. (Supreme Court of India)
Telecommunication towers are movable property and not immovable, thus input tax credit on same cannot be denied u/s 17(5) of the CGST Act on ground of immovability
The Hon’ble Supreme Court of India in the case of Commissioner, CGST Appeal-1, Delhi & Ors. v. M/S Bharti Airtel Limited & Ors. [Special Leave Petition (Civil) Diary No. 35416/2025, order dated August 8, 2025] held by dismissing the Revenue’s SLP that telecommunication towers are movable property and not immovable, thereby affirming the Delhi High Court’s decision that input tax credit on such towers cannot be denied under Section 17(5) of the CGST Act. The Supreme Court refused to interfere with the High Court’s judgment, effectively upholding that telecom towers qualify as plant and machinery eligible for ITC.
Facts:
M/S Bharti Airtel Limited and other telecommunication companies (“the Petitioners”) are engaged in providing telecommunication services and installing mobile towers and related infrastructure. The Petitioners availed input tax credit on goods and services used for construction and installation of telecommunication towers.
Commissioner, CGST Appeal-1, Delhi and other GST authorities (“the Respondents”) denied input tax credit on components related to telecommunication towers by classifying them as immovable property under Section 17(5)(d) of the CGST Act, 2017, thereby restricting ITC eligibility.
