The GST Appellate Tribunal (GSTAT) has admitted an appeal filed by Bharati Airtel Limited challenging the rejection of its Input Tax Credit (ITC) claim under Sections 17(5)(c) and 17(5)(d) of the Central Goods and Services Tax (CGST) Act, 2017. The Tribunal has held that the appeal requires consideration on merits and directed the respondents to file their cross-objections within four weeks.

The appeal arises from a dispute concerning the admissibility of ITC claimed by the telecommunications company. According to the submissions recorded by the Tribunal, the appellant’s ITC claim had been rejected by the First Appellate Authority by invoking the restrictions contained in Section 17(5)(c) and (d) of the CGST Act.

Section 17(5) of the CGST Act contains provisions restricting entitlement to input tax credit in specified circumstances. The present appeal specifically concerns clauses (c) and (d), which relate to restrictions on ITC in connection with certain works contract and goods or services used for construction of immovable property, subject to the statutory conditions and exceptions.

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The Tribunal’s order, however, does not finally determine whether Airtel is entitled to the disputed ITC. At this stage, the Bench has only examined whether the appeal should be admitted for consideration on merits.

Airtel Relies on Supreme Court Decision

During the admission hearing, the authorised representatives appearing for Bharati Airtel Limited submitted that the company operates in the telecommunications sector and that the dispute relates to its ITC claim.

The representatives further submitted that the First Appellate Authority had rejected the ITC claim under Sections 17(5)(c) and 17(5)(d) of the CGST Act. It was also argued before the Tribunal that the issue was already decided by the Supreme Court, and on that basis, the appellant requested that the appeal be admitted and heard on merits.

The order records the appearance of Mr. Mukesh Garg, AVP-Finance; Mr. Manish Jalan, GM-Finance; and Mr. Nilesh Kumar, DGM-Finance, who represented the appellant company at the admission stage.

GSTAT Finds Appeal Requires Consideration on Merits

After examining the case record, the Division Bench comprising Manoj Shankar, Member (Judicial), and Sanjay Kumar Mawandia, Member (Technical) concluded that the appeal deserved to be heard on merits.

The Tribunal accordingly admitted the appeal and directed that notice be issued to the respondents for filing their cross-objections within four weeks.

This is significant because the Tribunal has crossed the admission stage and has allowed the substantive ITC dispute to proceed for adjudication. The order does not, however, amount to a finding that Airtel’s ITC claim is legally admissible. The ultimate merits of the dispute remain to be decided.

Next Hearing Fixed for September 29

The Tribunal has fixed September 29, 2026, for further hearing of the matter. The respondents have been given four weeks to file their cross-objections.

The order was pronounced on August 11, 2026.

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