Telecom companies won’t let customers take the GST pinch; not to increase prices on pre-paid products

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From July 1, telecom services will become expensive by 3% under the Goods and Services Tax (GST) regime.
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But, you don’t have to worry as the telecom companies have decided not to pass on the hike to its customers, especially those on prepaid plans.

As per reports, the full talk time and data prepaid plans are set to become costlier but the telcos may absorb the cost.

"Starting July 1, we've decided to absorb the 18% GST rate on all full talk-time prepaid vouchers priced at Rs 200 and above as the objective is to maintain price points to hold on to prepaid customers opting for these products,” a top executive of a Big 3 telco, who did not wish to be named, told ET.

This move is aimed at retaining customers as the industry is undergoing a massive tariff war.

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"Any decision to absorb the higher GST on FTT prepaid vouchers is a clear customer retention strategy amid rising competitive intensity and pricing pressure, post-Jio's entry,” Mayuresh Joshi, senior vice-president at Angel Broking, told ET.

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