Chennai: A GST demand of 285 crore imposed on Tamil Nadu Arasu Cable TV Corporation Limited ((TACTV) by the joint commissioner of central raxes has been stayed by Madras high court.
Justice Krishnan Ramasamy granted the interim relief, concurring with senior counsel P Wilson who argued that TACTV could not be held responsible for the GST liability of local cable operators (LCOs) as it operated as a multi-system operator (MSO) as per regulations laid down.

TACTV challenged the demand made by the joint commissioner of central taxes, Chennai North commissionerate, stating that it transmitted signals to LCOs, who, in turn, service the end customers, and there is no direct nexus with end consumers by TACTV.
“There is a revenue-sharing interconnection agreement between TACTV and the LCOs, which includes provisions for paying respective taxes, including GST,” Wilson submitted.
The directorate-general of GST Intelligence (DGGI), Coimbatore regional unit, issued the show-cause notice proposing a demand for GST for the period from July 2017 to March 2022, related to the GST component not paid by the local cable operators, along with applicable interest and penalties.
Wilson also submitted that TACTV did not receive or retain the amounts collected by the LCOs and argued that such revenue could not be considered as income in its hands under Section 2(31) of the GST Act.