Budget 2021-22: Telecom sector expects GST exemption in regulatory fees, says EY

NEW DELHI: India’s telecom sector which needs to expand and enhance telecom infrastructure in order to deal with an increased demand of telecom services, is facing the challenge of ensuring liquidity and it is expecting pricing support from the government in the form of Goods and Service Tax (GST) exemption from regulatory payments such as license fee, spectrum usage charges, amongst others in the Union Budget 2021-22, according to EY.

The sector is also facing a huge blockage of capital in the form of GST input tax credits (GST ITC) which remains utilized, and with 4G auctions fast approaching along with a probable rollout of 5G later this year, telcos are also seeking a refund of working capital blocked in unutilised ITC, the London-based professional services firm Friday said.