GST implementation is not going to be easy for mobile companies
Mobile phone companies are set to face rigid accounting and tech challenges after the implementation of the goods & services tax (GST) from July 1. As per industry experts, telcos might even be compelled to make huge additional investments in order to overhaul and reconfigure their existing IT and billing systems so that they can be well equipped to undertake the complex task of splitting revenues from multiple sources like roaming, interconnect and termination charges. These additional costs could go up to Rs 300 crore or more, as per rough industry estimates. Presently, phone companies have IT and billing systems aligned at the circle level because of the government dividing India into 22 telecom service areas to ease licensing. However, since the GST of 18% (for telecom services) will be levied in 29 states and seven union territories (UTs), these telcos would have to empower their IT and billing systems to capture revenues at the state level from July 1st. "The