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Lower GST on telecom services to 12 per cent; Telcos demand

Telecom giants demand 12% GST rate

Telecom companies are going to ask the Finance Ministry to lower GST rate to 12% from the current 18% to make them at par with tax incidence levied on smartphones (12%). Cellular Operators Association of India (COAI) is going to question the logic behind fixing a higher rate for telecom services while levying a lower GST on all kinds of smartphones including 4-G handsets.

GST Impact on Telecom Companies

COAI represent the major telecom firms operating in India namely, Bharti Airtel, Vodafone India, Idea Cellular and Reliance Jio Infocomm. The phone manufacturers may also seek an extension of the GST deadline as they claim that they are in no position to meet the July 1 due to an extensive overhaul and re-configuring IT and billing systems along with a substantial investment needed both on the technology and accounting fronts.

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