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 per cent for telecom services should be fixed, the Lok Sabha was informed on Wednesday.
Communications Minister Manoj Sinha, in a written reply, said 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 per cent for telecom service should be fixed in place of existing 18 per cent".
The minister further said 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."
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