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Telecom operators can easily absorb 18 per cent GST, says telecom minister

August 13, 2017

The telecom minister has stated that the prevailing rate of goods and service tax (GST) for telecom sector is not high and telecom operators should be able to absorb it.

The operator community has been requesting the government to lower the GST rate from 18 per cent to 5 per cent citing that telecom should be considered as an essential service. The industry was subject to 15 per cent taxes in the pre-GST regime.

As per the minister, telecom operators will get input credit of around 1.75 per cent as well which will make the effective rate at 16.25 per cent. While he acknowledged that the rates have risen marginally after GST, the telecom service providers can easily absorb this."


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