GST: Telecom, insurance set to get costly

Telecom companies such as Airtel have told an inter-ministerial group that their sector should be treated as essential services.

With the GST set for a roll out on July 1 one several service providers have already started sending out mails to customers indicating a price hike. Mails from providers from the banking sectors have already started warning customers about a GST driven hike in prices.

Banks have informed consumers that the tax burden on credit card bills will increase from 15% to 18% from July. Telecom companies have said that monthly bills will rise as the gains from input tax credit will not be be significant. However the BSNL customers would not be hit by a price rice.

Telecom companies such as Airtel have told an inter-ministerial group that their sector should be treated as essential services. Hence they should face a lower GST of 5 or 12 per cent instead of the current 18 per cent.

For insurance policy holders the tax burden will push up the premium and the maximum impact would be on pure term insurance plans, where the levy will rise from 15% to 18%.

OneIndia News