Breaking News

You are here » Indian-Commodity  :  Economy  :  Communications Ministry to consult finance minister in case of genuine problems

18-Jul2017

Communications Ministry to consult finance minister in case of genuine problems

On concern raised by the telecom operators on higher GST rates, the Telecom Minister Manoj Sinha has said that Communications Ministry will “analyse” the impact of Goods and Services Tax (GST) on telecom subscribers, and approach the Finance Ministry in case consumers or players face “genuine problems”.

Sinha said that “If there are genuine problems then definitely I will consult the finance minister....We will analyse what people were paying earlier, the impact of GST, and whether input credit is being passed on to consumers.” Though, he also added that as of now there are no plans to approach the GST Council or finance ministry in this regard.

The GST rate for telecom services is 18 per cent, higher than 15 per cent that consumers paid on their phone bills in taxes and cess, before GST regime. However, under GST, the telecom operators will also get the benefit of input tax credit, bringing the overall effective rates lower for consumers. The minister noted that the impact of input credit will bring taxation levels lower, and hence the effective rate will be closer to 16 per cent, though he also accepted that there may be an operational difficulty for players to claim input tax credit since they operate across geographies.


Related News

View all news

India one of the fastest growing large economies in the world: IMF

Emphasizing on several key reforms carried out by India in the last five years, the International Monetary Fund (IMF) stated that the country has been one of the fastest growing large economies in the......

Govt increases investment limit for availing income tax concessions by startups

The government has given a major relief to startups by enhancing definition of startups. It has decided to relax angel tax norms for startups, including increasing the investment limit to Rs 25 crore for......

India needs revolution in farm sector to achieve 9-10% GDP growth: Niti Aayog CEO

Niti Aayog CEO Amitabh Kant has stated that there is need to bring revolution in farm sector to attain 9-10% Gross Domestic Product (GDP) growth. He also said that there is a need to boost investment in......

Top News

View all news

RBI's swap arrangement a 'sound move': Subhash Chandra Garg

Welcoming the Central Bank's rupee-dollar swap auction, the Finance Ministry has said that liquidity situation of the economy is comfortable and it will be boosted further by Rs 35,000 crore through the......

KPTL, Infibeam Avenues and Amarjothi Spinning Mills to see some action today

Kalpataru Power Transmission (KPTL) through its wholly owned subsidiary -- Kalpataru Power Transmission Sweden AB has signed definitive agreement to acquire 85% stake in Linjemontage i Grastorp AB for......

Kalpataru Power Transmission to acquire 85% stake in Linjemontage i Grastorp AB

Kalpataru Power Transmission (KPTL) through its wholly owned subsidiary -- Kalpataru Power Transmission Sweden AB has signed definitive agreement to acquire 85% stake in Linjemontage i Grastorp AB for......