Tata Sons secured a major victory as the GST Adjudicating Authority dismissed a Rs 1,500 crore tax demand related to their $1.27 billion payment to Docomo in 2019.
The payment, which resolved a dispute between Docomo and Tata Teleservices, was initially challenged by the Directorate General of GST Intelligence, claiming 18% GST was owed. However, Tata Sons argued that the payment was a result of arbitration proceedings and not subject to GST, citing relevant circulars. The decision may set a precedent for future arbitration cases.