If your mobile phone bill is Rs 1,000 then you will be shelling out Rs 30 more as the tax rate on telecom services will go up from 15 per cent to 18 per cent. Starting July 1 you will have to spend more on your phone bills and to buy new mobile handsets as the government decided to impose on them goods and services tax (GST) of 18 per cent and 12 per cent.
The talk time period for customers too would reduce. For example effective talk time on a Rs 100 prepaid voucher will marginally dip to Rs 82 instead Rs 85. Mobile phone users would also pay Rs 30 extra if their monthly phone bill is Rs 1,000.
The cost of handsets too will get costlier by at least 4 to 5 per cent after the GST rate was fixed at 12 per cent. This would however only make locally manufactured devices more expensive as they operate currently under lower tax rates due to benefits provided for local manufacturing.