The Cellular Operators Association of India -been pushing for lowering of Goods and Services Tax, or GST rate, for telecom services to five per cent in sync with essential services.
The debt-ridden industry has been saying that benefit of input credit is not enough to fully compensate the higher tax incidence in the new regime, and that telecom services are bound to become expensive for consumers once the new rates come into effect.
At present, telecom consumers are charged 15 per cent in form of tax and cess over their phone bills.
"We are disappointed that there has been no change in the GST rate for telecom, which is an essential service. It will increase the cost to consumers," COAI director-general, Rajan S Mathews told PTI.
The GST Council, chaired by Union Finance Minister Arun Jaitley and having state counterparts as members, today lowered tax rates on 66 of the 133 items demanded by various sections of the industry.
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