Summary:
The Supreme Court has dismissed the CGST department’s review petition, reaffirming that telecom towers qualify as movable property and are eligible for Input Tax Credit (ITC) under GST. The decision supports telecom companies such as Bharti Airtel and Indus Towers, confirming that towers fall under plant and machinery and are not excluded by Section 17(5)(d) of the CGST Act. The court also upheld the cancellation of related tax demands and notices, accepting that tower structures can be dismantled and relocated despite their concrete foundations being immovable.
The Supreme Court of India has dismissed the Central Goods and Services Tax (CGST) department’s review petition against its earlier decision that telecom towers qualify as movable property and are eligible for Input Tax Credit (ITC) under the GST regime.
The ruling is a relief for telecom companies such as Bharti Airtel and Indus Towers, along with other infrastructure-heavy industries, as it confirms that eligible business inputs used in telecom infrastructure cannot be denied ITC merely because the infrastructure is considered immovable.
In August 2025, the Supreme Court upheld the Delhi High Court’s December 2024 judgment in favour of Airtel and Indus Towers. The apex court ruled that telecom towers fall under the category of plant and machinery and are therefore outside the scope of Section 17(5)(d) of the CGST Act, 2017. It also upheld the cancellation of tax demands and show-cause notices issued against the companies.
The court rejected the tax authorities’ position that telecom towers should be classified as immovable property for GST purposes and also refused to distinguish their treatment under the previous service tax regime from their treatment under GST.
Telecom operators had maintained that towers should be regarded as movable equipment because they can be dismantled and installed at different locations. While the concrete foundation may be considered immovable, the steel and metal tower structures can be removed and relocated, they argued.
