Trai seeks reduction in GST on telecom to 5 percent

- Advertisement -

Telecom Regulatory Authority of India (Trai) has batted in favour of telecom operators by suggesting a lower licence fee, spectrum usage charge and a goods and service tax (GST) rate of 5 percent.

Trai, reduction, GST, telecom, India

DoT may take up with Ministry of Finance the issue of reduction in GST rate from 18 percent to flat 5 percent by declaring telecom sector as core infrastructure industry and economy enabler in India, Trai said in a letter to Department of Telecommunications (DoT) secretary Aruna Sundarajan.

- Advertisement -

Such an effort would make telecom services affordable and facilitate fast digitisation of the economy as well as the proliferation of telecom services in rural and remote areas to achieve the ‘Digital India’ mission.

An inter-ministerial group has been formed to look into the financial stresses faced by the operators and suggest a solution.

As per industry estimates, total debt for the sector is at around Rs 4.5 lakh crore. IMG already had a round of discussion with all the operators and will come out with its decision soon.

Trai also recommended that spectrum usage charge (SUC) for all auctioned airwave should be at a flat rate of 3 percent of adjusted gross revenue (AGR) of wireless services and for Broadband Wireless Access (BWA).

The letter has come after the meeting of all telecom CEOs with Trai on June 15.

On the relaxation in pay-out on spectrum auctioned price, Trai recommended that 10 percent of the bid amount can be made as initial payment from the forthcoming auction onward and the balance can be made in 18 years (18 equal annual installments with interest).

The regulator had, in January 2016, also recommended that the balance payment period for instalments of auctioned radio waves be increased to 18 years.

By Baishakhi Dutta

- Advertisement -

Most Popular Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

Crompton Greaves Starts Kitchen Appliance Manufacturing In Vadodara

0
This move aims to boost product quality and operational efficiency, enhancing the delivery of innovative, high-quality kitchen solutions to meet growing consumer demands. Crompton Greaves...

Advancing  Manufacturing Sector With New Refrigerator Plant

0
By incorporating advanced backward integration processes, this plant sets to redefine industry standards, promising improved efficiency and reduced environmental impact, while also boosting local...

EV Sales In India Fall Face First From March to April 2024

0
Electric Vehicle sales, across segments, have fallen short of the promise the sector was witnessing over the last few months. Despite the extension of FAME scheme for...

Buzz

Progress And Challenges In Autonomous Commuting

0
Despite over a decade of technological advancements and testing in cities like Phoenix and San Francisco, robotaxis still faces significant hurdles.  Companies like Waymo, Cruise,...

New EV Policy Offers Incentives For Plant And Machinery Investments

0
Investments in creating physical infrastructure such as plants, machinery, charging stations, and other assets developed or acquired by companies will qualify for incentives under...

Battrix’s Dr Yashodhan Gokhale Joins JSW Energy As VP

0
Interestingly, he had started his professional innings in the role of a Research Chemist with Sudarshan Chemical Industries Dr Yashodhan Pramod Gokhale has joined JSW...

Important Sectors

Progress And Challenges In Autonomous Commuting

0
Despite over a decade of technological advancements and testing in cities like Phoenix and San Francisco, robotaxis still faces significant hurdles.  Companies like Waymo, Cruise,...

New EV Policy Offers Incentives For Plant And Machinery Investments

0
Investments in creating physical infrastructure such as plants, machinery, charging stations, and other assets developed or acquired by companies will qualify for incentives under...

Battrix’s Dr Yashodhan Gokhale Joins JSW Energy As VP

0
Interestingly, he had started his professional innings in the role of a Research Chemist with Sudarshan Chemical Industries Dr Yashodhan Pramod Gokhale has joined JSW...

Zevo India Aims For 50% Solar-Powered EVs In Logistics By FY25

0
The company intends to power its electric fleet using solar energy. Solar-powered vehicles, as implied by the name, are electric vehicles that use solar...

EVR Motors Discusses Tech Sharing With Indian OEMs

0
The Israel-based EVR Motors designs Radial Flux Permanent Magnet (RFPM) motors and licenses this technology for manufacturing by OEMs and component makers. EVR Motors, an...

Manufacturing

EVR Motors Discusses Tech Sharing With Indian OEMs

0
The Israel-based EVR Motors designs Radial Flux Permanent Magnet (RFPM) motors and licenses this technology for manufacturing by OEMs and component makers. EVR Motors, an...

Automotive Electronics Industry Growth Prospects And Strategies

0
From electric vehicles (EVs) to autonomous vehicles, discover the challenges, key players, and market segments driving a $136 billion industry revolutionising vehicles and the...
Siemens and CSA

Siemens To Sell Innomotics To KPS For $3.8B

0
Siemens chief financial officer Ralf Thomas expressed his pleasure at the significant progress made in optimizing their portfolio through the sale of Innomotics to...
Siemens and CSA

Siemens Limited Announces ₹1000 Crore Capex

0
In a statement, Siemens announced that it is expanding its factory operations in Goa to address the rapidly growing demand for essential industry components. Siemens...

Atul Aggarwal Named New Managing Director Of Sterling Tools

0
In his new position, Atul Aggarwal, who serves as a whole-time director as well, will lead the company's expansion and development into new verticals. Sterling...