Airtel, Indus Towers Get Major GST Relief As SC Backs Input Tax Credit On Telecom Towers

The Supreme Court on Wednesday dismissed the Centre’s review petitions against its earlier decision allowing Bharti Airtel and other telecom companies to claim input tax credit (ITC) on mobile telecom towers under the Goods and Services Tax regime, according to a Moneycontrol report.

The ruling provides relief to Airtel and Indus Towers and settles a key question around the GST treatment of telecom infrastructure. The court’s decision means telecom towers can continue to be treated as “plant and machinery” for the purpose of claiming ITC, rather than being classified as immovable property.

The review petitions were filed by the Commissioner, CGST Appeal-1, Delhi, challenging the Supreme Court’s August 8, 2025 order. The earlier order had declined to interfere with the Delhi High Court judgment that had ruled in favour of Airtel and other telecom companies.

Why The Telecom Tower ITC Case Matters

The dispute centred on whether telecom towers fixed to land or rooftops should be treated as immovable property under Section 17(5) of the CGST Act, 2017. If classified as immovable property, companies would not be able to claim ITC on them.

Telecom companies, however, argued that towers should be treated as plant and machinery and therefore remain eligible for credit. The Delhi High Court had accepted this position, holding that telecom towers fall within the scope of plant and machinery.

The Revenue had challenged the ruling, arguing that the towers were permanently attached to land and should therefore be treated as immovable property for GST purposes.

What The Supreme Court Said

A bench of Justices Vikram Nath and Prasanna B. Varale found no error in its earlier order that required reconsideration. The court therefore dismissed the review petitions.

The Supreme Court had previously rejected the Revenue’s special leave petitions against the Delhi High Court ruling in August 2025. At the time, it also rejected the Revenue’s attempt to distinguish between the treatment of telecom infrastructure under the earlier service tax regime and the GST framework.

Telecom companies had argued that the purpose of the law under both regimes was to restrict ITC on immovable property, while telecom towers did not fall within that category.

The latest decision strengthens the legal position in favour of telecom companies seeking ITC on tower infrastructure and removes the immediate uncertainty created by the Centre’s review petitions.