The Directorate General of GST Intelligence (DGGI) directed the Tata Sons to pay GST worth Rs 1,524 crore. The demand has been raised against the payment made to Japanese firm NTT DoCoMo in 2017. 18% GST is applicable on such transaction, the office said.
Tata Sons had paid the amount to NTT Docomo in a three-year dispute which allowed the Japanese telecom major to exit its 26.5 percent stake in the India telecom operator Tata Teleservices.
In the year 2019, the investigation wing of the department had made a detailed enquiry in this case. The reports now said that Tata Sons intend to contend the tax demand, and the agency will send a show cause notice in due time.
A few weeks ago, the Directorate General of Anti Profiteering (DGAP) had found Tata Starbucks guilty of profiteering to the tune of Rs 4.51 crore by not reducing prices of coffee despite a cut in the rate. The agency revealed that Tata Starbucks, the equal joint venture between the Tata and global coffee chain Starbucks, had hiked the base price of one of its coffee variants after the GST Council slashed tax rates on restaurants from 18 percent to 5 percent with effect from November 15, 2017.
This kept the retail sale price of the product post GST rate reduction intact the same as before. This case will be now heard by the National Anti-Profiteering Authority (NAA), which will pass the final order about the quantum of profiteering.
