Understanding
Communication
Service Tax
(CST)
What is Communications
Service Tax (CST)?
The CST is a tax imposed on charges for the use
of communications services provided by
electronic communications service providers.
This tax applies to various communication
services, including mobile and internet services.
Benefits of CST
The benefits of CST:
• Revenue Generation: CST is a significant
source of revenue for governments.
• Regulation and Oversight: By taxing
communication services, governments can
better regulate the industry.
• Encouraging Fair Competition: CST levels
the playing field among service providers.

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What services are subject
to Communication Service
Tax?
Services associates with communication,
including telecommunications, internet services,
satellite television, and modern communication
platforms are subject to communication service
tax.
Which Companies Have to
Pay CST?
Here is a list of companies that have to pay
communication service tax:
• Telecommunication companies
•
Internet service providers
• Satellite TV providers
• CPaaS and SaaS providers
How is the Communication
Service Tax calculated?
CST is calculated as a percentage of the service
charges levied by the communication service provider.
The tax rate varies depending on local regulations.

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