Routine meeting held by minister with telcos

Reliance Jio chairman, Akash Ambani; managing director, Pankaj Pawar; vice chairman of Bharti Enterprises, Rajan Mittal; and Vodafone Idea MD Akshaya Moondra, among others met up with Jyotiraditya Scindia. Union Minister of Communications in the Capital.

Discussion points included:

Telcos to get a fair share in the revenues from large OTT platforms;

Telcos need for a level-playing field for satellite comm services;

Telecom industry highlighted issues under the GST regime. One of the most pressing issues is the non-availability of input tax credit (ITC) on the procurement of petroleum products, which has created a cascading effect. Under GST, telecom operators are unable to offset the Central Excise and VAT paid on the procurement of petroleum products, leading to increased operational costs and reduced competitiveness in the global market. Another critical challenge stems from restrictions on claiming ITC for goods and services used in the construction of telecommunication towers. This restriction has imposed a substantial financial burden on industry players, hindering infrastructure expansion and modernisation efforts, which are crucial for meeting growing consumer demands. Inconsistencies between telecom regulations prescribed by the Telecom Regulatory Authority of India and GST provisions have exacerbated compliance complexities.

CT Bureau