Telecom Ministry will analyze the impact of GST: Manoj Sinha

Telecom Minister Manoj Sinha today said that the ministry will analyze the impact of Goods and Services Tax on telecom subscribers, and will approach finance ministry in case consumers face problems.

If there are genuine problems then definitely I will consult the finance minister....We will analyze what people were paying earlier, the impact of GST, and whether input credit is being passed on to consumers, Sinha said.

As of now, there are no plans to approach the GST Council or finance ministry in this regard, he further added.

To recall, Goods and Services Tax (GST) Council has finalized 18 percent tax rate on telecom services, which is three percentage points higher than the current 15 percent services tax.

In fact a report by report by Credit rating firm ICRA, GST will have the marginally negative impact on telecom sector.

The report said the telecom services will become costlier with the increase in tax rate from 15 percent to 18 percent and will lead to lesser talk time on fixed denomination packs for prepaid users which account for almost 95 percent of the total user base in India.

For telecom tower industry the tax incidence will increase to 18percent from 15percent (service tax). However the same would be passed on to the telecom services sector, ICRA said.