Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English

EXIT Poll Results

Detailed Exit Poll Results
News18 » Business
2-min read

DoT Suggests Cutting GST on Telecom Services to 12%: Manoj Sinha

TRAI felt that a favourable consideration of the matter would help reduce financial stress of telecom players and enable them to offer affordable and quality services to consumers.

PTI

Updated:December 27, 2017, 9:12 PM IST
facebookTwitterskypewhatsapp
GST, Tech Cottage Industry
Image for representation.

New Delhi: The Telecom Department has suggested to the finance ministry that GST for telecom services be lowered to 12 per cent against the existing 18 per cent, Parliament was informed on Wednesday.

The recommendation was made during the process of the Budget exercise, and the matter is with the Department of Revenue under Ministry of Finance for necessary action, Telecom Minister Manoj Sinha said in a written reply to Lok Sabha.

"...the DoT (Department of Telecom)...dated 01.12.2017 had recommended to the Department of Revenue during the process of the Budget exercise that a standard rate of GST at 12 per cent for telecom service should be fixed in place of existing 18 per cent," the minister said.

Sinha noted that the Telecom Regulatory Authority of India (TRAI) had favoured reduction of licence fee and Universal Service Obligation levy, cut in Spectrum Usage Charges and relaxation in spectrum pay-out terms, in view of the debt burden on telecom companies.

TRAI felt that a favourable consideration of the matter would help reduce financial stress of telecom players and enable them to offer affordable and quality services to consumers.

"The issues are under examination," Sinha said.

TRAI also found merit in demand of telcos pertaining to reduction in GST rate as well as treating telecom sector as core infrastructure.

To a separate but related question on the debt of telcos, Sinha said Interministerial Group (tasked to review the financial difficulties of the sector) was of the view that while there were pockets of financial stress, the entire sector could not be described as being in financial difficulty.

This is because debt, capital structure and cash flows and hence repayment capability varied from company to company.

The interministerial group report has recommended giving one-time opportunity to telcos to opt for more number of instalments (16 instead of the current 10 ) for payment of spectrum, and the matter needs further approval by the Cabinet, he added.

The high-powered Group has also proposed amendment to spectrum trading guidelines, saying that the telecom department should issue clarification that only gain or profit from spectrum trade will form part of revenue for the purpose of calculation of Adjusted Gross Revenue (AGR).

Other recommendations include easing the interest rate on delayed payment of license fee and spectrum usage charges and harmonisation of spectrum in 2300 MHz and other bands on a priority.

It has also suggested that approach to fixing reserve price for spectrum should be reviewed in sync with global best practices. "Action for obtaining necessary approvals is underway, including consultations with TRAI and other government departments," Sinha added.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

| Edited by: Aakarshuk Sarna
Read full article
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
Yes Bank 51.40 8.44
Reliance 1,416.35 1.42
Indiabulls Hsg 231.20 16.80
Zee Entertain 250.20 -5.39
Maruti Suzuki 7,302.30 2.50
Company Price Change %Gain
HDFC AMC 2,882.20 6.11
Yes Bank 51.40 8.44
Indiabulls Hsg 231.50 17.42
Reliance 1,415.30 1.37
IRCTC 779.20 7.57
Top Gainers
Company Price Change %Gain
Yes Bank 51.40 8.44
Coal India 205.95 3.28
Adani Ports 421.70 3.07
Grasim 746.50 3.03
Maruti Suzuki 7,302.30 2.50
Company Price Change %Gain
Yes Bank 51.40 8.44
Coal India 205.95 3.31
Maruti Suzuki 7,318.15 2.74
Power Grid Corp 202.55 2.45
NTPC 121.00 2.02
Top Losers
Company Price Change %Gain
Zee Entertain 250.20 -5.39
Tata Motors 136.85 -1.90
Eicher Motors 20,275.90 -1.05
Bajaj Auto 3,087.05 -0.79
Hindalco 187.40 -0.74
Company Price Change %Gain
Tata Motors 136.70 -1.05
Bajaj Auto 3,087.75 -0.73
Bharti Airtel 383.25 -0.65
ICICI Bank 437.75 -0.64
Axis Bank 709.20 -0.19

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results