Telcos seek Rs 35K cr GST refund, pending payment of Rs 20K cr from state-run firms

telecom industry on Wednesday reiterated demand for a refund of Rs 35,000 crore GST credit and pending payment of around Rs 20,000 crore dues owed by public sector firms to various operators, saying that Finance Minister Nirmala Sitharaman has assured to clear outstanding amounts of MSMEs in 45 days under new stimulus measures.

" Finance Minister's announcement is in line with government's aim to provide necessary impetus to economic growth and build a 'self-reliant' India. We welcome announcement of all pending payments within 45 days from PSEs to MSME sector.

" telecom industry has unutilized GST input tax credit over Rs 35,000 crore for which sector has repeatedly demanded a refund," COAI Director General Rajan S Maws said in a statement.

A task force constituted under finance ministry last month acknowledged stress in telecom sector and said Supreme Court judgement mandating companies to pay around Rs 1.35 lakh crore has placed some operators in a "precarious position" due to short period of time in which y have to meet ir liabilities.

Cellular Operators Industry Association, which represents companies like Reliance Jio, Bharti Airtel, Vodafone Idea, etc, reiterated demand for clearing pending payment by state-run telecom firms mainly BSNL.

"Moreover, total outstanding from PSUs is approximately Rs 20,000 crore since long. We hope Hon'ble Finance Minister, Nirmala Sitharaman, in course of next few announcements would give similar relief to sector that has immensely contributed to keeping country connected during last 25 years and has kept 1 billion people connected during current lockdown situation," Maws said.

task force said telecom sector is alrey reeling under financial stress of Rs 7.7 lakh crore and AGR liability is furr going to d to uncertainty for some of companies.

Telecom companies are jointly required to shelve out Rs 1.35 lakh crore as justed gross revenue dues to comply with an apex court order of October 24, 2019. Sitharaman on Tuesday announced first set of relief for businesses as part of relief package focussed on micro, small and medium businesses and will continue to issue guidelines for or sectors grually.

Taiwan-based electronic chipset provider for telecom products Mediatek's Indian arm said that government's 'Make in India' initiatives and emphasis on self-reliance is commendable and relief packages will help India's economy to overcome negative effects of lockdown.

"Technology-driven systems are one of five key pillars of growth and will bolster tech sector in its efforts to scale-up and support economy. MediaTek is hopeful that se initiatives will furr India's growth towards becoming a digital economy," Mediatek India managing director Anku Jain said.

(Representative image: PTI)