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Prepaid mobile subscribers to get lower talk value under GST regime, says ICRA

June 02, 2017

According to a report by credit rating agency ICRA, the goods and services (GST) regime would reduce the talk value received by prepaid mobile subscribers on fixed denomination packs. This would have a marginally negative impact on the telecom sector as prepaid users account for almost 95 per cent of the total subscriber base in India, the agency said.

As per the agency, the increase in tax rate from the current 15 per cent to 18 per cent under the GST regime would lead to a significant increase in the compliance and data management requirement of the telecom industry since the industry’s operations are divided across 22 telecom circles.

Further, the increase in the tax rate from the current 6 per cent to 12 per cent on domestic mobile handsets would impact various local manufacturing units, the agency said.


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