Manoj Kumar Singh, director general, Digital Infrastructure Providers Association (DIPA), has released his statement on Supreme Court upholding Delhi High Court’s ruling that telecom towers are movable property and eligible for input tax credit. According to him, the upholding represents a transformative victory for India’s digital infrastructure ecosystem. This landmark ruling brings immense relief to infrastructure providers and telecom operators who have been the driving force behind India’s remarkable digital connectivity revolution.
This decision validates DIPA’s persistent advocacy for recognising telecom towers as essential plant and machinery rather than immovable property, acknowledging their fundamental role as the backbone of India’s digital infrastructure. The industry is very much happy with this progressive judgment that will substantially improve the financial health of infrastructure providers, unlocking new opportunities for accelerated deployment of digital infrastructure across the nation. This comes at a pivotal moment as India rapidly advances toward comprehensive 5G expansion, nationwide digital transformation, and the pioneering development of 6G technologies.
The Supreme Court’s refusal to accept “hair-splitting” interpretations between service tax and GST regimes demonstrates judicial wisdom in maintaining consistency across tax frameworks. As Singh noted, “This judgment ensures consistency with earlier service tax rulings and avoids unnecessary technical interpretations that could have hindered legitimate business operations. This is a welcome relief for the telecom sector and infrastructure providers who invest heavily in fixed infrastructure, reinforcing the fundamental principle that legitimate business inputs should not be arbitrarily blocked from credit eligibility.”
The ruling will have profound implications for the sector’s growth trajectory, delivering multiple transformative benefits to India’s digital infrastructure landscape. The judgment will release substantial working capital that was previously locked up, enabling strategic reinvestment in infrastructure development while simultaneously reducing the overall cost of service delivery across the sector. This financial relief opens up tremendous opportunities for faster deployment of digital infrastructure in underserved areas, effectively addressing critical connectivity gaps in rural and remote regions where digital inclusion remains a priority.
Furthermore, this progressive ruling strongly aligns with and accelerates the government’s ambitious Digital India initiatives and 5G rollout plans, providing the essential financial framework needed to fast-track India’s comprehensive digital transformation journey. The decision is expected to significantly benefit key stakeholders in the sector, including major players like Bharti Airtel and Indus Towers, by allowing them to claim substantial tax credits that were previously considered ineligible due to restrictive interpretations.
DIPA has consistently advocated for this critical reform through constructive engagement with various government stakeholders, emphasising the movable nature of telecom infrastructure components. The infrastructure provider industry has successfully established a robust telecom infrastructure network with more than 0.83 million towers nationwide, demonstrating our unwavering commitment to supporting India’s digital future and connectivity goals.
This landmark Supreme Court decision will significantly strengthen our industry’s capability to meet the escalating demands of digital connectivity while catalysing fresh investments in the sector. The relief provided by this judgment opens up new opportunities for innovation, technological advancement, and infrastructure expansion, directly supporting the government’s vision of creating a digitally empowered and connected India.
We commend the Supreme Court for this forward-looking and progressive decision that not only provides immediate financial relief to the industry but also strengthens the fundamental foundation of Digital India. This ruling marks a new chapter of growth and opportunity for India’s digital infrastructure sector, positioning us strongly for the challenges and opportunities that lie ahead in our journey toward becoming a global digital leader.
