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GST And Its Impact on Pre-paid and Post-Paid Telecom Users


Both pre-paid and post-paid telecom user s shall also face the heat of GST and industry, as with GST roll-out, telecom companies are likely to absorb 3% increase in tax rate on their FTT or full-talk time pre-paid user base as well as select data packs. For the post-paid users, the 3% extra levy shall be reflected in their bills.

GST And Its Impact on Pre-paid and Post-Paid Telecom Users

The industry is already struggling to revive amid intense competition from the new entrant, Reliance JIo. And GST has put yet another burden in the form of 18% tax incidence instead of the current tax rate of 15%. For pre-paid customers, GST implementation would hence mean lower talk time.

Pre-Paid Telecom Users

For the FTT tariff vouchers available for voice calling that vary across cities in terms of pricing and range between Rs. 100 and Rs. 1000, the telecom companies have completely absorbed the 3% hike across denominations.

The talktime shall henceforth go down say for a recharge of Rs. 100, you will now on get a talktime worth Rs. 82 as instead of the current talktime of Rs. 85, rest being diverted as the tax component.

Post-Paid Telecom Users

Despite the reports, that the industry is considering full absorption of the hike on FTT pre-paid vouchers and select data packs, if you are a post-paid telecom subscriber, you will have to shell out an additional amount due to additional 3% levy.

As per reports more than 90% of the telecom users are on the pre-paid platform. So, for this lot of essential service, be prepared to dole out additional 3%.

Story first published: Friday, June 30, 2017, 14:31 [IST]
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