M/s Vijay Communication Ltd., a registered telecom operator, is planning to bid for securing the right to use spectrum offered by the Government…

The GST is to be discharged on the supply of spectrum allocation services by the recipient of services (the telecom operator) on reverse charge basis (RCM). (i) In case where full upfront payment is made by the telecom operator, GST would be payable when the payment of the said upfront amount is made or is due, whichever is earlier. (ii) In case where deferred payment is made by the telecom operator in 18 monthly installments, supply shall be considered as 'continuous supply of services', since the services are being supplied continuously for a period exceeding 3 months with periodic payment obligations. Since the due date of payment is ascertainable from the contract, the invoice shall be issued on or before such due date of payment as per the option exercised by the telecom operator. Thus, in this case, GST would be payable as and when the payments are due or made, whichever is earlier 4 . 4 In above answer, it has been assumed that the due date of payment is ascertainable from the contract. However, it is also possible to assume that the due date of payment is NOT ascertainable from the contract. In that case, the invoice shall be issued before or at the time when the supplier of service -DoT receives the payment. Thus, GST would be payable as and when the payments are made.