GST Bill: Indian telcos say mobile bills may go up if rate is above 15%

Indian GSM telecom operators have urged the Indian government to ensure that the GST rate applied for the telecom services should be no more than the existing 15% to meet the government’s vision of a connected digital India and ensuring affordable services. A failure to cap the rate at 15%would increase call charges and lead to talk-time pricing discrepancies.

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The Rajya Sabha on Wednesday evening cleared the much debated GST Bill. The telcos have urged the government to resolve the issues before implementing the Goods and Services Tax (GST) regime.

“There are certain aspects relevant for the telecom sector that would need to be considered by the policy makers while finalising the GST legislation. We look forward to our continued engagement with the committee and working with them to make the implementation seamless, transformation meaningful and optimal,” Rajan S Mathews, Director General, COAI said.

The telcos, through industry body COAI, however have welcomed the passing of the GST Bill.

COAI however said that and said that it was a significant step towards simplified goods and service taxation, ease in compliance, achieving transparency and improving ease of doing business. “The passing of the GST Bill is a major turning point in India’s history driven by the visionary leadership of Prime Minister Narendra Modi and Finance Minister Arun Jaitley, to support the growth of businesses in the country. The industry welcomes and celebrates this iconic reform,” he said.

“This paradigm shift in India’s indirect tax regime must play an enabling role in the growth of key sectors like telecommunications,” he added.

COAI said that it has been actively engaging with various policy makers on all aspects that have a material impact on the telecom industry.

These relate to a single pan-India registration for the telecom operators, lower and uniform rate of tax for telecom services, determination of tax liability under GST, determination of transaction value for tax, self-supply of services based on State-wise registrations and various components related to admissibility of input tax credits.

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10 Comments on "GST Bill: Indian telcos say mobile bills may go up if rate is above 15%"


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August 4, 2016 3:39 pm 3:39 PM

If common man is affected by such increase in taxation system then again telecom sector will again increase call rates ultimately common man is effected.

Maximum benefits has been given to manufactures and other companies and if the same benefits are passed on to the coomon man then it will be good for all.

Hoping for the best always ?

August 4, 2016 2:51 pm 2:51 PM

Lol, such threats have been issued so many times, bills have started going down with the imminent Jio launch nearing fast

Ashish maharashtra
August 4, 2016 1:17 pm 1:17 PM
I think GST is welcome move but telecom compaines ae right they need uniform GST in all india because telecom circle today are not divided based on state geography eg maharashtra circle even has goa in it similarly delhi circle has Gurgaon and noida in it whic are part of different states like haryana and up which lead to unecessary anomalies and may have different talktime in recharges depending on location even though they belong to same circle hence uniform gst across all circle else trai to develop statewise circle in those areas where either city or complete state needs… Read more »