PIL alleges evasion of GST by cable, internet services

A division bench of Telangana High Court issued notices to the Central government, Telecom Regulatory Authority of India (TRAI), and various cable television and internet service networks of the State to respond to the PIL complaining that the Central tax authorities have failed to collect the Goods and Services Tax (GST) from these networks since the year 2017. 

The bench comprising Chief Justice Raghvendra Singh Chauhan and Justice B Vijaysen Reddy passed this order recently in the PIL filed by N Rama Rao, social worker from Wyra in Khammam district, seeking direction to cancel the services/licenses of various cable television networks, Direct-To-Home, unencrypted satellite network, Internet protocol television (IPTV) and multi system operators (MSOs) for allegedly carrying out business activities in violation of provisions of GST Act. The petitioner said in Khammam town alone, these networks have collected about `1.44 crore GST from the subscribers since 2017 and were not paying the same to the Tax Department. 

According to petitioner’s counsel Avinash Reddy, the networks did not register themselves as per the Act to evade tax collected in the form of Network Capacity Fee (NCF) from subscribers. Though the issue was brought to the notice of the GST officials, no action was initiated. After hearing the case, the bench issued notices to the respondents to respond to the PIL and posted the matter to December 3.