Telecom Department pitches for 12 % GST on telecom services

     Written by : SMTV24x7 | Wed, Dec 27, 2017, 05:57 PM

Telecom Department pitches for 12 % GST on telecom services

New Delhi Dec 27: The Telecom Minister Manoj Sinha today informed the Lok Sabha that the Department of Telecommunications (DoT) had recommended to the Department of Revenue during the process of the Budget exercise that a standard rate of GST at 12 percent for telecom services should be fixed.

The Manoj Sinha in a written reply had said that "DoT on December 1, 2017 "had recommended to the Department of Revenue during the process of the Budget exercise that a standard rate of GST at 12 percent for telecom service should be fixed in place of existing 18 percent".

The minister added that "the Telecom Regulatory Authority of India (TRAI) on June 23, 2017 had noted that as regards the suggestion of TSPs (telecom service providers) about treating the telecom sector as core infrastructure sector and reduction of GST rate is concerned, the TRAI finds considerable merit in their proposition as this would be in the interest of end consumers of telecom service and would help in realising the goal of Digital India. DoT may consider actively taking up these issues with the Ministry of Finance."

Currently, 18 % GST is being levied on Telecom services and earlier 15 % Service tax was levied on the services.