New Delhi: Telecom companies will have to pay Goods and Services Tax (GST), along with the instalments paid towards spectrum charges, a senior official said.
GST will have to be paid at 18% by telecom companies along with each instalment, an official at Department of Telecom (DoT) said. “The GST Council in its next meeting is likely to clarify the procedure for payment of GST by companies winning the bids during the spectrum auction.” 
The clarification should end confusion among field formations regarding the method for collection of GST in the auction process.DoT will hold the next round of spectrum auction on June 6 for eight spectrum bands meant for mobile phone services. The base price for the auction has been set at Rs 96,317 crore.The spectrum will be assigned for 20 years and successful bidders will be allowed to make payments in 20 equal annual instalments in the coming auction.
All the available spectrum in the 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, 2,500 MHz, 3,300 MHz, and 26 GHz bands are part of the auction. The total frequencies being put under the hammer are valued at Rs 96,317 crore on base price.
Moore Singhi executive director Rajat Mohan said under the GST law, spectrum payment is covered under licensing services for the right to use other natural resources on which tax is levied at 18%.”