The telecom ministry is monitoring the impact of the goods and services tax (GST) on consumers and will also analyse whether the operators are passing on the benefits they receive through input tax credit (ITC) to the subscribers.
“We will analyse what the people are paying now as well as before GST came. We will also analyse the impact of GST, both on consumers and telecom operators, and whether the input credit that the companies will get is being passed on to the consumers,” telecom minister Manoj Sinha told reporters.
Telecom services are being charged at a rate of 18 per cent GST, whereas earlier they attracted a service tax and cess of 15 per cent. With ITC, the effective tax will come down, the minister said, adding that companies are facing some operational issues in claiming the ITC due to their operations spread over different states, which the ministry is looking into. Sinha, however, added that in case there are “genuine problems”, the ministry will approach the finance ministry.
“At present, there are no plans to approach the finance ministry or the GST Council, but we are keeping a close watch and will take a call very soon based on the billing pattern,” he said.