DoT watching impact of 18% GST on telecom sector: Manoj Sinha

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The telecom department is closely watching the impact of the proposed 18 per cent Goods and Services Tax (GST) on the industry, Communications Minister Manoj Sinha said on Thursday.

“The sector was already paying 15 percent tax. So there will be a difference of 3 percent. We are looking at it. The telecom operators are planning to meet the GST Council,” Sinha told reporters.

He was addressing media on the completion of the present National Democratic Alliance government’s three years and various achievements of the telecom department.

The government’s decision to put 18 per cent tax rates on the industry will impact the industry as well as the consumers, feel various industry stakeholders.

Listing the various achievements of the government in the last three years, Sinha said the telecom department’s image has improved considerably in the last three years and the department is getting various investment proposals.

Speaking about the call drop issue, Sinha said: “Call drop is a big issue, We are constantly monitoring it. 2.5 lakh BTS (base transceiver station) are put up in less than one year to address this issue.”

“The DoT has launched Interactive Voice Response System (IVRS) in December 2017. The results obtained through the IVRS platform show that the call drops reported by subscribers have dropped from 64 per cent in December 2016 to 57 per cent at the end of March 2017, a drop of nearly 7 per cent in three months,” he added.

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