New Delhi . Telecom companies will have to pay GST along with spectrum fee. Telecom companies will have to pay 18 per cent GST with each instalment, an official said. The Department of Telecommunications (DoT) will hold the next round of spectrum auction for eight spectrum bands for mobile phone services on June 6.

The base price for the auction has been fixed at Rs 96,317 crore. The spectrum will be allocated for 20 years and successful bidders will be allowed to make the payment in 20 equal annual instalments in the upcoming 'mega' auction.

GST Council will clarify the payment process

"The GST Council may clarify the process of GST payment by companies winning bids during spectrum auction in its next meeting," the official said. The clarification will eliminate confusion among field officers regarding the method of GST collection in the auction process.

Rajat Mohan, executive director of accounting and consulting firm Moore Singhi, said that under the GST law, spectrum payment comes under licensing services for the right to use other natural resources, which is taxed at 18 per cent. Mohan said, "Spectrum fees have to be paid in a phased manner over a certain period. Thus, the tax payment will also be different. The board of directors should issue a clarification in this regard so that any litigation in this regard can be avoided."