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OTF Exclusive GST impact on mobile phone bills -- How much we may pay for Data & Calls from July 1st ..


5 Jan 2015
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Under India's new unified taxation regime, if you're a post-paid subscriber currently paying Rs 1,000, you'll be charged at least Rs 30 extra every month. If you're a pre-paid subscriber, you can expect your talk-time to stumble. If, for instance, you're on a Rs 100 pack, you're likely to get about Rs 82.20 talk-time as against Rs 83.96 now for the same price.

The decision to levy a higher tax (of 18 per cent) as opposed to the incumbent 15 per cent, on telecom services, will likely have a cascading effect on telecom companies, further stressing the already bleeding telecom sector, according to industry experts. They, in fact, proposed that that telecom services be deemed as 'necessity services' and thus should attract a lower indirect tax (lower than the existing 15 per cent)

GST is coming at a time when tariffs for data usage have fallen to an all time low across the board whereas voice calls are now free for not just Reliance Jio subscribers but also for a majority of postpaid subscribers of Airtel, Vodafone India and Idea Cellular.

Airtel, the same operator, that was charging Rs 1,199 for unlimited voice calling (local, STD, and national roaming) along with 1GB of 3G/4G data along with 100 SMS per day, until last year; now offers unlimited voice calling (local, STD, and national roaming) along with 3GB of 3G/4G data along with 100 SMS per day for as little as Rs 499. Moreover, for the last three months, it has been offering free 10GB 4G data per month to all post-paid subscribers for free. It has now extended the same for three more months going forward.

It would be interesting to see how things change (or not) post July 1.

Source: GST impact on mobile phone bills: Here is how much you will pay for 4G and calls from July 1



1 Jun 2013
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Very little almost no impact on prepaid but post paid bill will rise by 3%

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