GST Circular No 222/2024
Clarification on Time of Supply for Spectrum Allocation Services under GST
The Board has received queries about the time of supply for spectrum allocation services when telecom operators choose to pay in installments as per the Frequency Assignment Letter (FAL) from the Department of Telecommunications (DoT). This clarification ensures consistent implementation of GST provisions.
For spectrum allocation where payment is made in installments, the service is considered a “”continuous supply of services”” under GST. GST liability arises as per the timing rules for reverse charge mechanisms outlined in the CGST Act. Specifically, for reverse charge supplies, GST is payable at the earlier of the date of payment or 60 days post-invoice issue. If the payment is made in installments, GST is due when each installment is paid or becomes due, whichever is earlier.
In cases of full upfront payment, GST is due at the time of payment or when it becomes due. The same principles apply to other cases involving natural resource allocations by the government. Trade notices will be issued to inform the public about this clarification.
