Decided 12 December 2024. The Delhi High Court has held that telecommunication towers and pre-fabricated shelters are movable property, so input tax credit on goods and services used to set them up is not blocked by section 17(5)(d) of the CGST Act. The fact that the Explanation excludes telecom towers from 'plant and machinery' does not make them immovable. The Supreme Court has since dismissed the Revenue's special leave petitions and its review petition.
Case at a glance
| Cases | Bharti Airtel Ltd. v. Commissioner, CGST Appeals-1, Delhi; Indus Towers Ltd. v. Union of India; Elevar Digitel Infrastructure Pvt. Ltd. v. Union of India |
| Forum | Delhi High Court (Justice Yashwant Varma and Justice Girish Kathpalia) |
| Case Nos. | W.P.(C) 13211/2024, 14710/2024 and 16477/2024 |
| Date of judgment | 12 December 2024 |
| Supreme Court | SLP(C) 22060-22062/2025 dismissed on 08.08.2025; review dismissed on 19.08.2026 |
| Result | Orders and SCNs denying ITC quashed |
Facts of the case
Bharti Airtel challenged an order dated 24.03.2023, upheld in appeal on 31.05.2024, denying ITC on towers. Indus Towers and Elevar Digitel (formerly ATC Telecom Infrastructure) challenged show cause notices dated 25.07.2024.
Indus Towers' notice under section 74 covered July 2017 to March 2024 across 48 registrations. The department treated towers as immovable property and invoked section 17(5)(d), relying on the Explanation that excludes telecom towers from 'plant and machinery'.
Issue before the High Court
Are telecom towers immovable property, so that ITC on goods and services used to build them is blocked by section 17(5)(d)?
What the High Court held
- The Supreme Court in Bharti Airtel v. CCE, Pune held that mobile towers and pre-fabricated buildings are movable and are 'goods', applying the tests of nature and object of annexation, intendment, functionality, permanency and marketability.
- Towers are bought in knocked-down form, bolted to a base only for stability, and can be dismantled, moved and resold without damage.
- Section 17(5)(d) applies only to construction of an immovable property. Excluding telecom towers from 'plant and machinery' does not mean they are immovable; they must first be immovable to fall within clause (d).
- The Airtel orders and the Indus and Elevar notices were quashed.
- The Supreme Court declined to interfere with this judgment on 08.08.2025 and dismissed the Revenue's review petition on 19.08.2026.
Practical takeaways for taxpayers
- Tower companies and telecom operators can claim ITC on towers and shelters; pending demands can be challenged on the basis of this ruling.
- The movable-versus-immovable test from Bharti Airtel can be used for other equipment bolted to foundations.
- Keep technical documents showing that equipment is assembled from parts and can be dismantled and relocated.
Frequently asked questions
Is ITC available on telecom towers under GST?
Yes. The Delhi High Court held towers are movable, so section 17(5)(d) does not apply, and the Supreme Court refused to interfere.
Does the 'plant and machinery' exclusion of towers matter?
No. The Court held it does not make towers immovable property.
Facing a similar GST dispute?
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The Supreme Court dismissed the Revenue's SLPs on 08.08.2025 and its review petition on 19.08.2026. This summary is based on the order of the Delhi High Court in W.P.(C) 13211/2024, 14710/2024 and 16477/2024. It is general information, not legal advice; the outcome of any case depends on its own facts and the full text of the order.