GST: Phone bills, insurance and banking to cost more

COAI feels an 18% rate under nationwide goods and service tax regime will further stress the sector

Availing insurance, banking services, investing in mutual funds and paying mobile bills will get costlier with the GST Council setting a rate of 18 per cent for telecom and financial services. But, while telephone bills will surely rise, analysts are divided over to what extent financial services companies will pass on the increased tax rate to clients.

The existing service tax rate, including for telecom and financial services, is 15 per cent, including Swachh Bharat cess and Krishi Kalyan cess.

Industry body Cellular Operators Association of India (COAI) feels an 18 per cent rate under the nationwide goods and service