earnings are concerned.<\/p>
The primary reason for such disappointment is the increased pay-out, and real readiness of the entire eco-system for the immediate roll-out of GST. The current financial health of the industry and the IT compatibility with the added complexity of the LSA\u2019s vis-\u00e0- vis state mapping compounds these challenges further. Under the GST regime, tax (and cess) payable by the telecom services sector increased to 18%, from the existing (around) 15%. For the sector, this additional 3% has to be absorbed by the service providers due to hyper-competition; the industry is going through one of its most competitive phases, making it almost impossible to increase tariffs. The government has allowed input credit, which brings the effective taxation level down to around 17%, but this is still higher than what the industry can handle at this time. Telecom is an essential service and should ideally come to 5% GST slab. Along with the taxes, the telcos also pay as high as 30% of their revenues to the Government in the form of licence fees and other levies, such as spectrum-usage charges.<\/p>
The constant hyper-competition along with the massive upfront pay-outs for spectrum at the auctions over the past few years, and the need to constantly invest in new technologies and refurbish existing networks has left the books of the incumbent telcos impoverished. The telecom service providers cumulatively owe over INR 4.6 lakh crore, with revenues of just under INR 2 lakh crore. The on-going hyper-competition has already forced the telcos to reduce voice tariffs and offer deep discounts, which cannot be sustained in the long run.<\/p>
Implementation issues are gradually being addressed. Apart from the sheer number of invoices that have to be filed on a daily basis, there is also the fact that distributors and retailers also have to file returns under the new system; they were exempt earlier. The telecom operators have to go out of their way to build awareness amongst the majority of the retailers, numbering in lakhs. These education and awareness programs take time due to the large network of retailers and distributors that the telcos have built over the years and are an additional cost.<\/p>
Telecom services are already highly regulated. They are provided to over a billion customers across 22 licence areas or circles that India is divided into as per the telecom licence rules. Under the GST system, the jurisdictions are as per the geographic state and UTs. This leads to overlaps between states and circles and has resulted in the deployment of additional manpower and significant time taken in remaining compliant with both systems. There are also a number of tax uncertainties and increased costs that have cropped up due to the multiple assessments and audits.<\/p>
While one national tax system in place of overlapping taxes has been rolled out, for most telecom companies the unit of credit blockage has unfortunately been reduced from that of an entity to that of a Circle or State geography (as applicable). This is increasing the credit blockage substantially and burdening the sector even more as each Circle or state geography is not necessarily profitable to every company yet. Hitherto in the Service tax regime, the credit blockage was rightfully only at the entity level as most telecom companies were centrally registered. Now in the GST era unless each of the telecom circles of an entity achieve operational profitability, the credit blockages will be much more than that of service tax era.<\/p>
For a key sector whose capex investment has a direct positive impact on the national GDP, this unnecessary additional credit blockage at a Circle\/State geography due to the shift from a pan India geography to that of a State geography is a step in the backward direction. The telecom industry wants focused correction to undo this disadvantage that the GST era is bringing to this sector.<\/p>
The ease of doing business has been severely impacted. The millions of transactions carried by the telcos daily also mean additional IT and filing systems which are also an added expense and is time-consuming. The compliances \u2013 transaction level wise return filing for both income and expenditure is a major challenge given the extraordinarily large volume of transactions and the exacting
requirements of the GST compliance portal.<\/p>
The Department of Telecommunications has said that it will analyse the impact of GST and approach the Finance Ministry in case consumers or players continue to experience genuine issues. The sector is reeling under a daunting debt and it needs urgent rescue and relief. Otherwise, the debilitating financial health of the sector will throw the spanner in the wheel of the Hon. Prime Minister\u2019s ambitions and visionary Digital India programme. The industry hopes that the government will review the situation and consider a rollback of the GST slab to 5%. The industry is also hopeful that the IMG will consider substantive relief measures such as reduced SUC and even recommended tax holidays for the sector as it moves from voice to an all data network. However, as of now, telecom sector is patiently waiting in the hope of its issues to be effectively addressed.<\/p>","blog_img":"","featured":0,"status":"Y","seo_title":"Telecom sector hopes government reviews GST slab","seo_url":"telecom-sector-hopes-government-reviews-gst-slab","cms_link":"telecom-sector-hopes-government-reviews-gst-slab\/2651","updated_at":"2017-10-16 19:47:56","time":"2017-10-16 12:10:46","authors":[{"author_name":"Rajan S Mathews","author_description":"Director General, COAI","author_designation":"Director General","author_company":"COAI","profile_pic":"retail_files\/author_1485515109_temp.jpg"}],"tags":["Telecom","Telecom sector","Industry","GST","GDP","Rajan S Matthews","GST slab"],"url_seo":"telecom-sector-hopes-government-reviews-gst-slab"}">
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经济自由化以来,在90年代早期,切换到商品和服务税政权可能已经被印度最大的经济改革。新税收制度取代了数以百计的重叠和层叠税收在中央和国家水平到一个国家的税收制度。税收改革将带来的一个额外的25%的企业在税收净,为该国提供增加了4.2%国内生产总值。然而,100天实现以来,这些估计可能会修改由于实现重大挑战,特别是对关键部门,如电信部门。印度电信部门贡献了6.5%的GDP,这最重要的一个部门到政府
收益。
这种失望的主要原因是增加派息,整个生态系统的和真正的准备立即转出销售税。当前的财务状况行业它兼容添加复杂性的LSA的相对活力状态映射化合物进一步这些挑战。消费税税收制度下,应付税和地方税的电信服务业增加到18%,从现有的(大约)15%。对该行业来说,这额外的3%必须由服务提供者由于超吸收;这个行业正在经历一个最有竞争力的阶段,使它几乎不可能增加关税。政府允许输入信贷,使有效的税收水平降至17%左右,但这仍高于行业可以处理。电信是一个重要的服务和最好的5%销售税板。随着税收,电信公司也支付高达30%的政府收入形式的许可费和其他税,如频谱使用费用。
恒超竞争的巨大前期奖金为频谱拍卖在过去的几年里,需要不断投资于新技术和翻新现有网络使得现任电信公司贫困的书。电信服务提供商累计欠INR 4.6十万的卢比,收入略低于INR 2十万的卢比。持续的超竞争已经迫使电信运营商降低关税和声音提供折扣,不能长期持续。
实现问题正在逐步解决。除了发票的数量,必须每天提起,也有这样一个事实:分销商和零售商也必须文件返回新系统;他们免除。电信运营商必须出去的构建意识在大多数零售商,卢比的编号。这些教育和意识计划需要时间的大型网络零售商和分销商,电信公司已经建立了多年来,是一个额外的成本。
电信服务已经受到严格监管。他们提供给超过十亿的顾客在22牌照区域或圆圈,印度分为按照电信牌照的规则。消费税制度下,司法管辖区的地理状态和生产。这导致国家间的重叠,圆圈和导致部署额外的人力和剩余的符合两个系统的重要时间。还有许多的税收的不确定性和成本的增加,出现了由于多个评估和审计。
而重叠的一个国家税务系统税收已经推出,对于大多数电信公司信贷单位堵塞却不幸被减少的一个实体的一个圆或国家地理(如适用)。这是大幅增加信贷堵塞加重该行业更作为每个圆或国家地理还不一定每个公司盈利。迄今为止在服务税收制度,信贷堵塞理应是只有在实体层面因为大多数电信公司集中登记。现在在消费税,除非每个时代电信界的一个实体实现运营盈利能力,信贷堵塞会更比服务税时代。
关键行业的资本支出投资有直接积极影响全国GDP,这不必要的额外信贷堵塞在一圈/国家地理由于从锅里印度地理,地理是向后的方向迈出的一步。电信行业想要集中校正撤销这个缺点消费税时代将这个部门。
已经严重影响了做生意的缓解。数以百万计的事务由电信公司日常也意味着额外的和归档系统也是一个额外的费用和时间。遵从性——事务级别明智返回申请收入和支出是一个主要的挑战有非常大量的交易和严格的
消费税的合规要求门户。
电信部门已表示,它将分析销售税和方法的影响,财政部在消费者或球员继续体验真正的问题。该行业正面临着一个艰巨的债务和需要紧急救援。否则,衰弱的财务健康部门将把扳手的轮总理阁下的野心和有远见的数字印度计划。业界希望政府将审查情况并考虑消费税的回滚板到5%。行业也希望IMG将考虑实质性的救助等措施减少往下,甚至推荐免税期的部门从声音一个所有数据网络。然而,到目前为止,电信业是耐心地等待,希望问题得到有效解决。
