OTF Exclusive Telcos to ask govt to lower GST on telecom services to 12% ..

Sai Jai

5 Jan 2015
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KOLKATA: Mobile phone companies are set to shortly press the finance ministry to lower the goods & services tax (GST) rate on an essential service like telecoms to 12%, to ensure parity with the applicable tax rate for mobile handsets, while pushing for an extension to the July 1 deadline for implementation of the new tax regime.

The Cellular Operators Association of India (COAI), which represents India’s biggest phone companies such as Bharti Airtel, Vodafone India, Idea Cellular and Reliance Jio Infocomm, is likely to question the logic of the finance ministry’s decision to impose an 18% GST rate on telecom services while choosing to levy a 12% tax on mobile handsets.

Separately, phone companies may seek an extension of the July 1 deadline for GST implementation, saying they are in no position to meet the timeline, given the stiff accounting and technological challenges and sizeable additional investments entailed for overhauling and re-configuring IT and billing systems for GST payments compliance. The COAI will shortly raise these issues in identical letters to Finance Minister Arun Jaitley, Telecom Minister Manoj Sinha and Revenue Secretary Hasmukh Adhia.

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Telcos to ask govt to lower GST on telecom services to 12% - ET Telecom


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