The Indian government has clarified that telecom service providers will not have to pay service tax on payments for spectrum purchased before 1 April, the Economic Times writes. The Central Board of Excise and Customs (CBEC) stated that payments for spectrum rights, whether upfront in full or in instalments, has been exempted from service tax. The clarification follows the introduction of a provision which made all government services, including auctions, taxable. In the case of spectrum auctions, the new tax would have amounted to retrospective taxation, as it would also have been applicable on deferred payments for airwaves bought before 1 April.