COAI disappointed with GST rate for telecom services

Vastavam web: Telecom industry disappointed with GST rate for telecom services with unchage at 18 percent said COAI .The debt-ridden industry has been saying that benefit of input credit is not enough to fully compensate the higher tax incidence in the new regime, and that telecom services are bound to become expensive for consumers once the new rates come into effect.At present, telecom consumers are charged 15 per cent in form of tax and cess over their phone bills.We are disappointed that there has been no change in the GST rate for telecom said by COAI director-general Rajan.
The GST Council, chaired by Union Finance Minister Arun Jaitley and having state counterparts as members, today lowered tax rates on 66 of the 133 items demanded by various sections of the industry.”These broadly are the final rates… just because somebody raises an issue does not mean you have to grant it,” Jaitley said.Last week, COAI had shot-off a letter to the Revenue Secretary the second such letter in a week lamenting the high GST rate fixed for the telecom sector.
The apex industry body had highlighted that Singapore has a GST rate of only 7 per cent on telecom services, Malaysia (6 per cent), and Australia (10 per cent).The COAI letter further added that the sector, which has over a billion consumers and offers one of the lowest voice call rates in the world, is undergoing one of its most disruptive phases. The sector is reeling under a “daunting” debt burden of Rs 4.6 lakh crore.