2. TELECOM SECTOR
Telecommunications/Telephone companies and internet service providers and plays the crucial role in the evolution of mobile communications and the information society.
India is currently the second-largest telecommunication market and has the third highest number of internet users in the world. Under New GST regimes, services will have rates of 5%, 12%, 18% & 28% from July 1st 2017 where a single rate of 15% is applied on most services.
SERVICE
POST GST RATE (%)
PRE GST RATE(%)
CHANGES(%)
Telecom 18 15 3

3. GST IMPACT ON TELECOM SECTOR :
Govt. have fixed tax rate of 18% for telecom sector as on new GST regimes ,but the existing rate of service sector was 15% only. This additional 3% tax rate in telecom sector will give high tax.
The sector is facing severe pressure in the form of intense competition from Reliance Jio.
This decision would further bleed a sector still smarting from a price war triggered by the aggressive market entry of billionaires. Consequently, users will suffered more because of paying more prices on different plans / offers. For instance, customers recharging with Rs 100 pack will get about Rs talk time as against Rs
Ultimately, phone rate will be costlier & a possible increase in telephone bills.
The availability of input tax credit is expected to reduce operating costs and capital expenditure. Thus, the impact on profit margins could be small.
Telecom services will become expensive for consumers and impact the government project like digital India and digital payments.

4. RELIANCE INDUSTRIES LIMITED:
 Reliance Industries Limited is a Fortune 500 company and the largest private sector corporation in India.
Reliance owns businesses across India engaged in energy, petrochemicals, textiles, natural resources, retail, and telecommunications.
Reliance is the third most profitable company in India, the second- largest publicly traded company in India by market capitalization, and the second largest company in India as measured by revenue after the government-controlled Indian Oil Corporation.

5. GST IMPACT ON RIL INDUSTRIES :
RIL has changed its plan, for getting more benefit than other Telecom companies.
Tax burden will high.
After GST, telecom Industry have more competition: Tata Group & Bharti Enterprises have held exploratory talks to evaluate a mega alliance involving their telecom, overseas cable and enterprise services, and direct-to home TV businesses. Ultimately RIL will impact.