GST impact on telecom sector: Keeping an eye on tax levy, says Manoj Sinha

Govt proposed to levy 18% tax on telecom services under GST regime, current tax is 3%

Telecom Minister Manoj Sinha on Thursday said he is monitoring developments in the sector on account of proposed increase in tax levy on operators under the GST regime, amid fears of hike in prices after July 1.

The government has proposed to levy 18 per cent tax on telecom services under the Goods and Services Tax (GST) regime.

"Telecom operators have already been paying 15 per cent tax. 3 per cent difference is there. We are considering that at our level.

"They (telecom companies) will also meet GST Council members. We are monitoring it seriously at our level," Sinha said while sharing achievements of the government in the last three years.

Telecom operators have said there will be an increase in the cost of phone services after GST is implemented from July 1.