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AIRTEL - GST Project

Bharti Airtel Limited is an Indian multinational telecommunications services company operating in 18 countries across South Asia and Africa. It provides mobile, fixed line, and broadband services. Airtel pioneered outsourcing all operations except marketing, sales, and finance to reduce costs. Before GST, Airtel paid 15% service tax, which increased to 18% under GST. This additional 3% tax is reflected in postpaid bills and deducted from prepaid talk time. To help customers with GST compliance, Airtel offers free access to tax filing platforms and expert advice through a GST Advantage program.

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199 views4 pages

AIRTEL - GST Project

Bharti Airtel Limited is an Indian multinational telecommunications services company operating in 18 countries across South Asia and Africa. It provides mobile, fixed line, and broadband services. Airtel pioneered outsourcing all operations except marketing, sales, and finance to reduce costs. Before GST, Airtel paid 15% service tax, which increased to 18% under GST. This additional 3% tax is reflected in postpaid bills and deducted from prepaid talk time. To help customers with GST compliance, Airtel offers free access to tax filing platforms and expert advice through a GST Advantage program.

Uploaded by

0443Gomathinayagam
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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AIRTEL

ABOUT COMPANY:

Bharti Airtel Limited, also known as Airtel, is an Indian


multinational telecommunications services company based in New Delhi, Delhi NCT. It operates
in 18 countries across South Asia and Africa, and also in the Channel Islands. Airtel
provides GSM, 3G, 4G LTE, 4G+ mobile services, fixed line broadband and voice services
depending upon the country of operation. Airtel had also rolled out its VoLTE technology across
all Indian telecom circles. It is the second largest mobile network operator in India and the fourth
largest mobile network operator in the world with over 439.84 million subscribers.[5] Airtel was
named India's 2nd most valuable brand in the first ever Brandz ranking by Millward
Brown and WPP 

Airtel is credited with pioneering the business strategy of outsourcing all of its business
operations except marketing, sales and finance and building the 'minutes factory' model of low
cost and high volumes. The strategy has since been adopted by several operators. Airtel's
equipment is provided and maintained by Ericsson, Huawei, and Nokia Networks whereas IT
support is provided by Amdocs. The transmission towers are maintained by subsidiaries and joint
venture companies of Bharti including Bharti Infratel and Indus Towers in India. Ericsson agreed
for the first time to be paid by the minute for installation and maintenance of their equipment
rather than being paid up front, which allowed Airtel to provide low call rates
of ₹1 (1.4¢ US)/minute.
IMPACT OF GST ON AIRTEL

On the whole the Indian telecom sector contributes 6.5% to the GDP and is an essential sector in
the economy. It has witnessed significant upheaval since the implementation of GST in 2017.
Before GST, Airtel paid service tax of 15%, which has now increased to 18%. Apart from the
increased tax burden, new compliances have added to the woes of operators. Let's consider these
impacts in detail and the need for further improvements for Airtel the telecom operators.

Apart from a standard tax rate Airtel pay GST on levies as well. These include spectrum fee,
license fee, spectrum usage etc. When combined, it pays nearly 30% of their revenue in taxes.
Then the Airtel has requested for tax exemption on these levies.

PRE GST-SCENARIO AIRTEL

Bharti Airtel had over 359 million customers across its operations at the end of July 2016. Before
GST, telecom operators paid service tax of 15%. Airtel has clearly mentioned that the increased
3% will reflect in the postpaid bills of the users. They will deduct the tax rate from the talk time
for the prepaid users.

For example, here is an Airtel’s bill which was issued before July 1st 2017, i.e., before GST
implementation. The customer has the plan of rupees 500 but the tax which was implemented
before GST was 15% and so the tax would come to rupees 75 which resulted in the bill of rupees
575, which the customer needs to pay.

Bill Amount Tax Rate Tax Amount Total Amount

500 15% 75 575/-


POST GST SCENARIO AIRTEL

 Here is an example of Airtel’s bill which was issued after GST implementation.

 Here the total bill that the customer needs to pay was 1178.82 in which the actual
monthly bill was 999 in which the GST was 18% which made the tax as 179.82, resulted
in 1178.82.

AIRTEL GST ADVANTAGE – A THREE-PRONGED OFFERING


FOR CUSTOMERS

 Get free and secure access to the GST Network via Clear Tax: Airtel has partnered
with Clear Tax, India's largest tax filing platform, to enable easy digital submission of
returns by companies. With Airtel GST Advantage, customers can access Clear Tax’s
services free of charge. In other words, Clear Tax’s GST software and platform will be
available to Airtel customers without the subscription fee. This access to Clear Tax is
available till March 31st, 2018.
 Get the best on-demand professional advice about GST:  All Airtel customers will
have access to Airtel’s newly launched GST Advantage Helpdesk between 8.00 am and
8.00 pm on all weekdays. The Helpdesk will be managed by GST experts who will be
available to advise Airtel customers on any query relating to GST. Airtel has also
published a GST knowledge bank – developed by renowned tax experts. This knowledge
bank will empower all Airtel Business customers with an in-depth information about
GST.
 Additionally, preserve bandwidth while filing GST returns: Airtel GST Advantage
will also enable customers to upload their returns without worrying about bandwidth
charges. With GST Advantage, businesses will get free additional data* with any Airtel
corporate connection or device, to help them file returns.

REFERENCES

 https://economictimes.indiatimes.com/news/company/corporate-trends/gst-and-mobile-
phone-bills-impact-on-post-paid-and-pre-paid-users/articleshow/59382097.cms
 https://www.airtel.in/gst-advantage
 https://s3-ap-southeast-1.amazonaws.com/bsy/iportal/images/gst-faqs.pdf
 https://en.wikipedia.org/wiki/Bharti_Airtel#:~:text=His%20plans%20were%20finally
%20approved,2%20million%20mobile%20subscriber%20mark.

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