Supreme Court ruling on AGR will impact you too

Free talktime, late fee waivers and rebates on pre-paid vouchers for telecom consumers could be a thing of the past following the Supreme Court’s ruling on Adjusted Gross Revenue.

According to the court’s ruling, telecom operators cannot exclude any revenue they earn, including notional income or revenue forgone by the operator. For example, an operator usually offers a voucher of ₹10 for 10 minutes of talk time and adds another extra two minutes without charges. Until now the operator paid revenue share to the government on the ₹10 that he earned selling that voucher. Post the Supreme Court’s order, the operator will have to pay a revenue share on ₹12, adding the revenue waived for the additional two minutes of free talk time.