Tata Group moves Bombay High Court on Rs 1,500 crore GST claim: Report

Tata group has moved the Bombay High Court to contest a Rs 1,500-crore goods and services tax (GST) claim concerning its 2017 settlement of a dispute with the Japanese telecommunications company NTT Docomo, according to a report on The Economic Times.

The GST claim was made by the Directorate General of GST Intelligence (DGGI) and is related to the dispute settlement involving $1.27 billion in payments to NTT Docomo.

Tata Sons, which earlier sought government intervention in the matter, has challenged the claim of GST liabilities on the payments made.

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The report, citing sources, said that the DGCI had issued an intimation of tax, ascertained as payable through a DRC-01 A form in October. This is usually issued by the department before it serves a show-cause notice.

"The said form is issued before a notice is sent. However, the company has filed a writ petition and, therefore, a call on the SCN will now be taken once the matter is decided by the court," another person aware of the matter told ET.

The writ was filed before the Bombay HC under Article 226 in November and is scheduled to be heard on January 9.

"Since Tata Sons is the holding company, it is liable to pay 18 per cent GST on behalf of Tata Teleservices," a senior official told ET. "The matter is being pursued by DGGI, and the department is of the view that this route could be taken by other companies to avoid paying GST levied on services rendered and, hence, setting a precedent is a must."

According to officials, Tata Sons is determined to challenge the DGGI claim and is engaging its top legal experts to handle the case. However, Tata Sons did not comment on the matter.