• Notification Date: 28-01-2022
• Notification No: N/A

GST Hike to be reduced on Mobile Phones, Internet Connectivity and Tax Sops

Finance Minister Nirmala Sitharaman is about to announce the Union Budget 2022 the following week. People are expecting some relief in the tax structures to conduct a smooth business in the pandemic situation.

The government has improvised the calculation of ‘Adjusted Gross Revenue’ (AGR). It has reduced the bank guarantee requirements as well as the interest rates on delayed license fee payments. The government has allowed 100 per cent foreign direct investment. This has led the telecom sector to look for more support related to various policy and tax matters. The telecom sector is dependent on the import of core manufacturing equipment. It also depends on the accumulation of input tax credit under GST.

Tax Partner of Indirect Tax Services, EY, Bipin Sapra has stated that propelling the growth would be possible by either refunding accumulated input tax credit or by adjusting it against other statutory levies. He has demanded the GST rate of 18 per cent applicable on mobile phones be reduced to 12 per cent.

The Director of JK Lakshmipat University, Dr Pankaj Sharma has appealed for that there is a consistent growth in the education gap for which many children are being incapable of availing a good quality of education. According to him, the government should introduce new schemes for the enhancement of better internet connectivity. He also appealed that the higher education courses should provide job opportunities to the passed out candidates immediately. He requested the government to raise the educational allowance from 4.6% to 6% in the GDP. Apart from these appeals, there are other requests for the inclusion of subsidies and incentives regarding job creation in various companies.

The Indians are expecting that they would have more money in their hands. They want a revision of Section 80C. The limit was last raised to Rs.1.5 lakh in 2014.