GST will channelize the process, improve the entire tax brackets, and ensure improved taxing system. But the entire process might take some time, and with competitive industries such as telecom already voicing their displeasure with 18 percent GST rate, it might need to change from time to time depending on crucial deciders. Read on some of the most important aspects!
What does the biggest taxation reform hold? Please find below some of the most important impact our country's telecom industry is expected to have, or least already having under the GST regime.
According to the industry experts, telecom tower companies might miss out on an average of around 2,000 crore in annual savings on their diesel bills with petroleum products remained outside the ambit of GST. This might have a cascading effect for the telecom tower companies, most importantly because the telecom industry is the second biggest buyer of the petro product after the Indian railways.
It is also believed that GST might increase the administrative cost for the companies since the documentation tasks have been increased
This report in the Financial Times clearly points out the concern the telecom industry is having for the 18% GST rates . With a lot of disruption happened in the already competitive sector, adding 18% GST will further stress it up.
So, what can we say is that - Adding GST is expected to boost the economy and by introducing one standalone, unified taxing system; a lot of extra tax brackets can be erased. However, there are concerns such as in the case of the telecom industry that adding GST and in the rate might not be very good for important sectors which is very competitive, where change is the most vital things to consider.
Some believe it might stress the burdened industry, it might delay the rolling of infrastructure and even has its impact on flagship government initiatives such as Digital India and cashless India etc.
Hence, although GST has been introduced in the sector with an aim to channelize the industry, make it transparent and more accountable and ensure improved, meaningful changes; the taxing brackets on it might need to be revised, as expected and requested by the companies in the industry.
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