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Telcos in a Hurry to Rejig their IT; Billing Systems Ahead of GST Rollout

Telcos in Hurry to Reconfigure IT Infrastructure

Telecom companies are in a rush to readjust their back- end IT and billing systems ahead of GST implementation on July 1. Senior executives at major telcos have said that efforts are underway to ensure that all invoices issued to prepaid and post-paid customers include 18% GST instead of the current 15% service tax rate which is charged on telecom services.

“Complex software patchworks are being deployed to ensure telco IT billing systems reflect the change in invoicing from July 1,” a senior executive of a leading telecom operator revealed on the condition of anonymity.

“Each pan-India operator may need to cough up at least an extra Rs 40-50 crore for overhauling existing billing systems and deploying additional manpower to ensure GST is captured at the state level and paid based on location of supply of telecom service along with the customer’s location,” said a tax expert who works at a Big 4 tax consulting firm who was closely involved in the process.

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