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Smartphones May Get Expensive from April 1 as Govt Hikes GST Rate to 18% from 12%
The new rates will come into effect on April 1, 2020.
The government’s rationale for the higher GST was to correct the inverted duty structure in the smartphone industry.
GST increase on smartphones adds to industry’s worries
Xiaomi India managing director Manu Jain says the industry ‘will crumble’ due to the GST hike
ICEA says its domestic consumption target of $80 billion by 2025 will not be achieved due to the GST hike
Manu Jain Jain also noted that the smartphone industry is 'already struggling with profitability' because the Indian rupee is depreciating against the US dollar
Mobile phone industry will 'crumble' due to increased GST: Xiaomi's Manu Jain
Xiaomi India MD is asking GST Council to at least exempt devices priced below $200 from the latest GST hike
At the 39th GST Council meeting on Saturday it was decided to increase GST on mobile phones, specified parts to 18% from 12%
Mobile phones to cost more as GST hiked to 18% from 12% earlier
The decision to hike the rate on mobile phones was taken in the 39th GST Council meeting chaired by the FM.
GST increase for phones from 12% to 18% will crumble the industry: Xiaomi India MD
Everyone will be forced to increase prices. This will further weaken mobile industry’s #MakeInIndia program, said Xiaomi’s Manu Kumar Jain
Smartphones to get more expensive as GST revised from 12% to 18%
Goods and Services Tax (GST) hiked from 12 percent to 18 percent on mobile phones. Here's what you need to know
Smartphones to get more expensive in India.
Mobile phone prices to go up as GST Council raises tax to 18%
GST Council also decides to give relief to domestic maintenance, repair and overhaul service providers (in respect of aircraft) by reducing tax rate to 5 per cent from 18 per cent with full input tax credit
Industry and analysts denounce GST rate hike to 18% on mobile phones
Xiaomi MD says move could weaken demand as smartphone makers will be forced to raise prices
At its 39th meeting held today (March 14), the GST Council headed by Finance Minister Nirmala Sitharaman, has hiked the Goods and Services Tax (GST) rates on mobile phones and allied parts from 12 percent to 18 percent.
"Mobile phones and specified parts to attract 18% versus 12%. All other items, if there's a need to calibrate the rates, to remove the inversion, we can take them up at future, examination of that can happen at a later time," said finance minister Nirmala Sitharaman.
The new rates will come into effect on April 1, 2020.
The increase in goods and service tax (GST) on smartphones from 12% to 18% is expected to push up product prices and hurt the country’s smartphone industry. According to industry stakeholders, the move will add to the woes of companies already battling intense competition and supply shortages from China due to the Covid-19 outbreak.
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