New Delhi, May 19: GST slab rates announced today, it disappoints Telecom sector with 18 per cent Goods and Services Tax (GST) rates.
“Telecom industry hails GST as an iconic reform but we are disappointed with announced rate of 18 per cent. We had submitted to the government that consideration must be given to the present financial condition of the sector and any rate beyond the existing rate of 15 per cent makes the telecom services more expensive for the consumer.
“It will augment the existing burden of the industry further. This is also likely to slowdown the planned rollout of infrastructure across the country and will have an impact on flagship government initiatives like Digital India, cashless India and others,” said Rajan S Mathews, Director General, Cellular Operators’ Association of India (COAI).
“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,” Mathews added.
The operators have already initiated the registration process after the announcement of GST.
However, the telecom industry body is still on the hope for the clarity on certain rules which requires sufficient time.
The GST Council concluded its latest round of meetings on Friday with the four tax rate slabs for services as well as for goods, exempting, healthcare and educational services.
The next meeting will be held on June 3.