rahul1117kumar
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Mobile users will have to shell out an extra Rs 30 towards if their monthly phone bill is Rs1,000 with the government imposing a goods & services tax (GST ) of 18% on telecom services.
This may have an inflationary effect, hit consumption demand and negatively impact telco earnings, going forward, say analysts.
At present, telecom services attracts 15% service tax, but once the new 18% GST rate kicks in, consumers will see an effective three percentage point rise in their phone bills. This means, a consumer now paying a monthly bill of Rs 1,000 will have to spend Rs 30 more.
Likewise, the effective talk-time for prepaid customers will stand reduced. For instance, for a Rs 100 prepaid voucher, the effective talk-time will now be Rs 82 instead Rs 85.
GST: Mobile phone bills to rise post GST, Telecom News, ET Telecom
This may have an inflationary effect, hit consumption demand and negatively impact telco earnings, going forward, say analysts.
At present, telecom services attracts 15% service tax, but once the new 18% GST rate kicks in, consumers will see an effective three percentage point rise in their phone bills. This means, a consumer now paying a monthly bill of Rs 1,000 will have to spend Rs 30 more.
Likewise, the effective talk-time for prepaid customers will stand reduced. For instance, for a Rs 100 prepaid voucher, the effective talk-time will now be Rs 82 instead Rs 85.
GST: Mobile phone bills to rise post GST, Telecom News, ET Telecom