Smartphone prices can hike under GST

By Registrationwala

26th April 2017

 

Smart-phones prices are going are likely to rise once the Goods and Services Tax (GST) reform comes into place as the government is mulling a proposal to levy customs duty on the import of these devices.

There has been report for such a levy that it is expected to take the prices of Smart-phones up by 5 - 10%. GST tax reform will subsume all the indirect taxes and will replace a uniform tax structure in India, by roll out July 1, 2017.

GST will lead to encouragement to the concept of “Make in India”. It will boost local manufacturing and will keep Chinese companies at bay.

An inter-ministerial committee with representatives of the finance, telecom, IT, and commerce ministries have been set up to examine the issue in detail.

Ministry of Finance has proposed the removal of countervailing duty on electronic components imported from overseas and would also help local manufacturing as input cost would come down.Make in India program has also stimulated several Smartphone Companies to set up assembling units in the country. A report said that the value of mobile phones assembled in India has increased 373%.There has been 40 mobile phone plants set up by manufacturing 20 million phones every month.

Smart-phones from outside India like Huawei, Lenovo, Motorola, all assemble their phones in the country. Government has been urging Apple to make its smartphones in the country,Since the Cupertino-based company is looking for several tax concessions from the government to set up a manufacturing unit here.

 

Smartphone prices can hike under GST

2017-04-26