GST rates could be revised annually. Spectrum sale may fetch only ?10,000cr ($1.39bn) initial payment.
Once Upon a Year
Finance Minister Nirmala Sitharaman is reportedly set to make changes in GST rates an annual affair to remove “uncertainty” for business and the Government. Until now, GST rates were reviewed and revamped frequently, which Sitharaman says has led to an inverted duty structure where the raw materials ended up becoming costlier than the finished product.
“Therefore, when the rate of tax of one item is brought down, a whole lot of other ripple effects are created. With that ripple effect, refund is affected," Sitharaman said at a post budget interaction with reporters in Kolkata. [Livemint]
Telecom officials have said that, given the financial troubles of Vodafone Idea and Bharti Airtel, the Government may generate upfront payments of only ?10,000cr ($1.39bn) from spectrum auctions starting April 1st.
This implies that the next spectrum sale could fetch it only around ?40,000cr ($5.58bn) overall as against the ?5.86Lcr ($81.82bn) worth of airwaves that the government wants to put on sale at base price. [ET Telecom News]
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