A customer inside a Vodafone store in Mumbai. Photo: AFP

With Indian telecom companies struggling to keep themselves afloat, they are now seeking a waiver on goods and services tax (GST) on spectrum payments and other levies. However, Reliance Jio Infocomm, owned by India’s richest man Mukesh Ambani, has a dissenting view on the matter.

The Cellular Operators Association of India (COAI) has asked the government to adjust tax credits of 350 billion rupees (US$4.88 billion) in pending payments such as license fees and spectrum charges, Press Trust of India reports.

It said that since telecom firms’ have had to spend more capital while revenues have fallen substantially, creating liabilities across the sector.

It cited a report by the Telcom Regulatory Authority of India, stating that telecom industry revenue fell 32% between April-June 2016 and April-June 2018. COAI claims that this had led to the blocking of approximately 350 billion rupees of telecom operators’ capital in the form of excess GST credits.

However, since there is no industry consensus on the issue – with Reliance Jio expressing dissent, the government may be reluctant to agree to the request.

In a related development, Vodafone Idea chairman Kumar Mangalam Birla met officials in the PM’s Office to try to defer payment of spectrum charges. Vodafone Idea has to pay 95 billion rupees ($1.33 billion) in spectrum charges this year, the Economic Times reports.

———-

Asia Times has relaunched on www.asiatimes.com . Download our brand new native App for a sweeping selection of geopolitical and business news throughout Asia.

Asia Times Financial is now live. Linking accurate news, insightful analysis and local knowledge with the ATF China Bond 50 Index, the world's first benchmark cross sector Chinese Bond Indices. Read ATF now. 

Join the Conversation

93 Comments

  1. This is a truly enchanting website I forced to say.

    Too stale that there are not too assorted websites like This anymore. But I am timely that I develop it. Ok champion scribble literary works on it .

    You can keep company with my website here as well: xbody bucuresti

  2. Very good blog you have here but I was wanting to know if
    you knew of any forums that cover the same topics discussed in this article?
    I’d really love to be a part of online community where I can get suggestions from other
    knowledgeable individuals that share the same interest.
    If you have any recommendations, please let me know.
    Thank you!

  3. I would like to thnkx for the efforts you have put in writing this web site. I’m hoping the same high-grade blog post from you in the upcoming also. Actually your creative writing abilities has encouraged me to get my own website now. Actually the blogging is spreading its wings fast. Your write up is a great example of it.

  4. Have you ever thought about adding a little bit more than just your articles?

    I mean, what you say is valuable and all. However think of if you added
    some great pictures or video clips to give your posts more, “pop”!
    Your content is excellent but with pics and videos, this website could undeniably
    be one of the greatest in its niche. Great blog!

  5. Hi there would you mind sharing which blog platform you’re
    using? I’m planning to start my own blog soon but I’m having a hard time making
    a decision between BlogEngine/Wordpress/B2evolution and Drupal.
    The reason I ask is because your design seems different
    then most blogs and I’m looking for something completely unique.
    P.S Apologies for getting off-topic but I
    had to ask!

Leave a comment

Your email address will not be published. Required fields are marked *