The GST anti-profiteering authority has sought inputs from telecom operator Bharti Airtel and budget airline Indigo on whether the goods and services tax (GST) or credit allowed on inputs in the new regime has created room for reduction in prices.
Taking suo-moto cognisance of the impact of GST on prices in telecom and aviation sector, the National Anti-Profiteering Authority (NAA) has asked the market leaders in the sectors to calculate the input tax credit (ITC) benefits that have accrued to them and whether it was enough to pass on to end-consumers, according to sources.
“The companies have been asked to submit the calculation within a fortnight,” the source said.With regard to telecom sector which saw a rise in tax incidence post GST, the source said “there may not be enough room for passing on the benefits, but the NAA is seeking calculation from market leaders to assesses industry wide impact”.
When reached out for comments, Indigo spokesperson said, “The benefits of the GST rate reduction on tickets have been passed on to the customers by all airlines. We had a meeting with the competent authority to discuss the relevant details and have submitted the same for their review.”
Airtel spokesperson, however, said “We have not received any notice from the authorities asking for a report”.
The tax rate for telecom service providers was hiked to 18 cent in the GST regime, which was rolled out from July 1, 2017, from the erstwhile service tax rate of 15 per cent, including cess.