Mobile and electronics affiliation needs 12 per cent GST on cellphones

Mobile and electronics physique, India Cellular & Electronics Association (ICEA), needs that the prevailing 18 per cent GST on cellphones needs to be introduced all the way down to 12 per cent, and 5 per cent on the elements and elements. The excessive GST charges are appearing as deterrent for the digital adoption, ICEA said. It has collectively carried out a report with EY that emphasises the requirement of the fitting coverage impetus coupled with an applicable tax construction for the expansion of the cell phone trade in India. 

“This improve within the GST charge has a trickle-down impact resulting in the rise in costs for the patron, which in flip is reducing the demand for cellphones. Affordability can be a key to India reaching an 80 billion USD measurement within the home market by 2026, and GST charges will play an vital function,” stated ICEA.

Mobile telephone subscribers have crossed the one billion mark, and the month-to-month gross sales of cellphones have persistently been between 20-27 million in numbers. The cell phone manufacturing elevated from 6 crore items valued at ₹19,000 crore in 2014-15 to 33 crore items valued at ₹2,20,000 crore in 2020-21.

The 12% GST charge on cellular handsets elevated tax by virtually 50% on this sector from a prevailing nationwide common charge of round 8.2 per cent (pre-GST period). The trade was rising from GST with a tax improve, and the Government as soon as extra elevated the speed by one other 50% (i.e. from 12% to 18%). 

ICEA has requested varied state chief ministers to cut back the GST charges on cellphones to 12% and on elements and elements to five%. 

Pankaj Mohindroo, Chairman, India Cellular & Electronics Association (ICEA), stated, “This report captures all the focal points for policymakers that highlight the increase in GST rates of mobile handsets and its parts & components. I am confident that this study will be insightful on the importance of mobile phones, and it will give the Government adequate information to rescind the increase in the GST for mobile phones.” 

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