GST Rate on Telecom Sector
No Reduction in GST for Telecom Services
- Regulating and licensing frameworks impacting the sector
- Increased Quality of services and Connectivity for all
- Ease of doing business
- Absorption of new technologies including 5G and IoT
GST and Telecom : State Vs Private Revenue Models
- GST increases the debt burden on the operators. The pre-GST tax rate was 15%. Although the increase was only 3%, the entry of Reliance Jio with free data and free calling offers made survival difficult for other players.
- Telecom operators provide services area or circle wise. Generating a state-wise revenue will demand a lot of changes both physical and technical to the existing framework and infrastructure.
- GST increase compliances effort, audits telecom sector of the country is the second largest diesel consuming sector after railways. If petroleum products remain outside the GST bill then it will be very difficult for tower companies to set of their input liabilities.
- With petrol and diesel out of GST radar, Telecom operators cannot set their input liabilities. After railways, telecom sector takes the second spot in terms of diesel consumption in the entire country.
This post is particularly helpful and pleasing for all specialist. Chartered Accountant Firm in Gurgaon having key part in influencing Audit, to trademark, Income Tax Filing et cetera.
ReplyDelete