What is the demand-cum-show cause notice issued to GTPL Broadband for?

The notice is for the assessment of licence fees for the financial year 2024-25, with an estimated amount of Rs 357 crore.

Why has GTPL Broadband not made a provision for the Rs 357 crore demand?

GTPL Broadband believes it has strong legal grounds to defend its case based on legal opinions and prior tribunal orders concerning revenue from Pure Internet Services.

Are there other subsidiaries facing similar demands from the Department of Telecommunications?

Yes, GTPL KCBPL Broadband, a step-down subsidiary, has also received similar demands, with an estimated contingent liability.

Home / Business and Economy / Cable Giant Faces Rs 357 Cr Tax Demand

Cable Giant Faces Rs 357 Cr Tax Demand

9 Feb

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Summary

GTPL Broadband received a notice for Rs 357 crore in licence fees.
The company believes it has strong grounds to contest the demand.
Legal proceedings related to similar demands are ongoing.

The Department of Telecommunications (DoT) has issued a demand-cum-show cause notice to GTPL Broadband, a GTPL Hathway subsidiary, for licence fee assessment for FY24-25. The company, as of December 31, 2025, has not provisioned for the Rs 357 crore demand, citing strong legal defenses and marking it as a contingent liability. This situation stems from changes in licence fee regulations introduced under the Unified Licence framework in 2013, which removed prior exemptions for internet revenue.

The Internet Service Providers Association of India had challenged this change, and the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) ruled it discriminatory in October 2019. This ruling led to the quashing of similar demands, though the DoT has appealed to the Supreme Court. Amendments in March 2021 by the DoT to include internet revenue under the old regime have also faced stays from TDSAT.