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Andrew Bonwick
Vice President of Product Development at Relm Insurance
Madhav Sheth
CEO of Ai+ Smartphone
Stephen Rose
CEO Render Networks
The Government of India introduced GST on July 1, 2017. Under GST, goods and services fall under five tax categories: 0%, 5 %, 12 %, 18 %, and 28 %. The Goods and Services Tax (GST) Council has put telecom services under the 18% slab. Before July 1, 2017, telecom services were taxed at 15%. The 3% increase will reflect in the bills of the postpaid users. For the prepaid users, there will be a deduction in the talk time.
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Let us understand the impact of GST on prepaid and postpaid subscribers with the help of an example.
Assume that the postpaid bill of a subscriber is Rs.100. With an earlier tax rate of 15%, a subscriber had to pay Rs.115. Now with the introduction of GST, the final bill pay will be of Rs.118.
The effective talk time for prepaid customers will reduce now. If a subscriber recharges a number with a Rs 100 prepaid voucher, talk time will be Rs 81.75. Before GST the talk time was Rs.83.96.
| Earlier | Now | |||||
| MRP | ST | PF | TT | GST | PF | TT |
| 10 | 1.30 | 1 | 7.70 | 1.53 | 1 | 7.47 |
| 20 | 2.61 | 2 | 15.39 | 3.05 | 2 | 14.95 |
| 30 | 3.91 | 3 | 23.09 | 4.58 | 3 | 22.42 |
| 50 | 6.52 | 3 | 40.48 | 4.63 | 3 | 39.37 |
| 100 | 13.04 | 3 | 83.96 | 15.25 | 3 | 81.75 |
Idea More Than Full Talktime Plans
| MRP | Earlier | Now |
| 300 | 315 | 300 |
| 500 | 550 | 500 |
| 550 | 575 | 550 |
| 1000 | 1100 | 1000 |
| 2000 | 2200 | 2000 |
| 3000 | 3300 | 3000 |
*Inputs : Deepesh Arora
It is to be noted that the recharges done through paper vouchers billed to recharge distributors before July 1 will still attract 15% tax only. So subscribers can enjoy 3% more talk time on these recharge paper vouchers after July 1 till the old stocks last. For net savvy subscribers, there is no such leeway on recharging online. Netizens have to shell out 3% more on recharge from July 1 onwards.
