Saturday 22 July 2017 News Updated at 12:07 AM IST
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'Govt studying GST impact on telecom' - Deccan Herald
'Govt studying GST impact on telecom'
Deccan Herald
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Telecom Minister Manoj Sinha on Monday said that his ministry will study the impact of the Goods and Services Tax on telecom subscribers, and approach the Finance Ministry in case consumers or players face genuine problems.

"If there are genuine problems, then definitely I will consult the finance minister. We will analyse what people were paying earlier, the impact of GST, and whether input credit is being passed on to consumers," Sinha told reporters here.
As of now, there are no plans to approach the GST Council or finance ministry in this regard, he added.

The GST rate for telecom services is 18%, against the 15% tax rate earlier. However, under GST, telecom operators will also get the benefit of input tax credit, bringing the overall effective rates lower for consumers.

The minister noted that the impact of input credit will bring taxation levels lower, and hence the effective rate will be closer to 16%.

He conceded that there may be an operational difficulty for players to claim input tax credit since they operate across geographies.

Sinha said his ministry is keeping a close watch on the sector with regard to GST implications and will take a call "very soon" based on billing patterns.