The Digital Infrastructure Providers Association (DIPA) on Monday urged the government to extend input tax credit for telecom towers under the GST regime in the upcoming Union Budget 2024-2025, which would significantly reduce costs for infrastructure providers and ultimately benefit consumers.
A business pays input tax credit on a purchase that it can use to reduce its tax liability when it makes a sale.
Additionally, the industry body also requested clarity on the eligibility of related infrastructure and accessories for input tax credit, as the current ambiguity is leading to substantial financial exposure for the industry.
"As we approach the upcoming budget, the DIPA urges the government to prioritise policies that will accelerate the development of robust digital infrastructure across India,” said Tilak Raj Dua, Director General, DIPA.
“Our nation's digital future hinges on the rapid expansion of telecom networks, particularly 5G, and improved connectivity in rural areas,” he added.
According to the industry body, the implementation of industrial electricity tariffs for telecom infrastructure across all states is crucial.
“This could reduce operational costs by up to 20 per cent, freeing up resources for network expansion,” it said.
DIPA also recommended the swift implementation of the amended right of way (RoW) rules across all states and union territories.
This standardisation is vital for streamlining infrastructure deployment and reducing bureaucratic hurdles.
As the industry awaits the complete telecom rules under the new Telecommunication Act 2023, it requested clear guidelines on the definition of telecommunication networks, fair RoW grants, and the separation of telecom infrastructure from property considerations.
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