Mobile Companies Stopped Investing Rs 1000 Crore Due to GST

By Registrationwala

31st May 2017

 

Before the roll out Mobile manufacturing segments are in a dilemma and GST has become barrier on the investment of more than 1000 Crore. Mobile Companies and its manufacturing are on work out for the concessions of Local manufacturers. Giant Mobile Companies OPPO, VIVO, MICROMAX and  i-Phone manufacturers Visteon Corporation need to the know concessions.

Keeping GST in mind Mobile Manufacturer Foxconn is planning to lower down its production by 40%.But Companies plan is to lower down the production of component which would decrease the inventory of the stock.     

According to the reports GST will drop the prices of smart-phone. Indian Secular association being the representative of the like VIVO, OPPO, APPLE many other giant companies are having a plan to make things clear before the investment.     

But according to the 12 % slab GST will raise the prices making it equal to the imported stocks. This will affect the domestic manufacturers and affect lower down the profit consumed through Differential Structure. Association is on a plan to neglect GST rate on Phone of less than Rs. 5000 or will apply 5% tax slab. This is to lower down the prices of Phone. Association is also expecting particular definition for the Parts on which 12% GST rate will be levied. The Government has not given it a green signal.

“Make in India” movement has increased the pace in the industry in last 3 years. Government is planning to make things less affected.  

 

 

Mobile Companies Stopped Investing Rs 1000 Crore Due to GST

2017-05-31