In order to considerably lower costs for infrastructure providers and eventually benefit consumers, the Digital Infrastructure Providers Association (DIPA) urged the government on Monday to extend the input tax credit for telecom towers under the GST regime in the upcoming Union Budget 2024–2025.
When a company makes a purchase, it pays input tax credits that it might use to lower its sales tax obligation.
The industry organization further asked for clarification about the eligibility of relevant accessories and infrastructure for input tax credits, since the existing lack of clarity is placing the business at significant financial risk.
“The Director General of DIPA, Tilak Raj Dua, said, “As the 2018 budget draws near, the DIPA urges the government to prioritize measures that will speed the creation of robust digital infrastructure across India.”
“The quick development of telecom networks, especially 5G, and better connectivity in rural areas are critical to our country’s digital future,” he continued.
The business association says that it is imperative that industrial power prices be implemented for telecom infrastructure in every state.
According to the statement, “this could reduce operational costs by up to 20%, freeing up resources for network expansion.”
DIPA further suggested that all states and union territories quickly adopt the revised right of way (RoW) regulations.
This standardization is essential for lowering bureaucratic barriers and expediting the implementation of infrastructure.
Clear criteria on the classification of telecommunication networks, equitable RoW awards, and the separation of telecom infrastructure from property issues have been requested by the sector, which is awaiting the full telecom laws under the new Telecommunication Act 2023.
