There have been various litigations on the AGR while over Rs 25,000 crore is lying with the government on account of GST for which the industry is seeking a refund.
A preliminary finding revealed that the telecom sector would require somewhere between $50-60 billion to operationalise the National Digital Communications Policy 2018 objectives by 2022.
In October 2018, the Narendra Modi government has come out with a national policy that aims to attract as much as $100 billion worth of investments and create 4 million new employment opportunities.
In an interaction with Economic Times, EY telecommunication leader Prashant Singhal said that $50-60 billion is required to achieve policy targets by 2022. He also stated that there is a need to come up with recommendations on annual gross revenue (AGR) as well as Goods and Service Tax (GST) to unlock more than Rs 25,000 crore.
The English Daily reported that there have been various litigations on the AGR while over Rs 25,000 crore is lying with the government on account of GST for which the industry is seeking a refund.
Telcos, barring Reliance Jio, have asked the government to waive GST on spectrum payments and other levies, and in a letter to to the government, lobby group, the Cellular Operators Association of India (COAI) recently said that revenues have declined substantially, the output GST on revenue is unable to absorb input GST credits available.
EY also informed that nearly Rs 35,000 crore of operator’s capital in the form of excess GST credits have been blocked.