Telecom industry falls under the category of 18 percent slab rate under Goods and Service Tax (GST) and it disappoints the industry very badly.
Telecom industry acclaims GST as an iconic reform but the industry is a bit disappointed with the announcement of 18 percent slab rate. We already requested to the government consideration must be taken to the current financial condition of the sector and any rate exceeds the present rate of 15 percent makes the telecom services costly for the consumer.
Rajan S Mathews, Director General, Cellular Operators’ Association of India (COAI), said “It will augment the existing burden of the industry further. This is also likely to slow down the planned rollout of infrastructure across the country and will have an impact on flagship government initiatives like Digital India, cashless India and others.”
Mathews added. “As an essential service, the telecom industry needs some benefits and tax relaxation in order to provide a seamless and hassle-free service. The industry has worked tirelessly and has fulfilled its motto of connecting everyone till the last mile connectivity.”
COAI said, Considering the solid impact of GST the telecom operators have already commenced the registration process involving migration to the GST compliance.
The GST Council has completed last round of meetings on Friday in Srinagar with the final decision to apply the similar four tax slab rate for services as well as goods. However, Healthcare and educational services are exempted from GST. The next GST council meeting will be scheduled on 3rd June.
