Smartphones May Get More Expensive After GST Rate Hiked From 12% to 18%

Smartphones May Get More Expensive After GST Rate Hiked From 12% to 18%
The GST Council, headed by Finance Minister, Nirmala Sitharaman, has elevated taxes on smartphones from 12 p.c to 18 p.c in a transfer that the India Cellular and Electronics Association (ICEA) claims will enhance the costs of handsets within the nation.

In an interview to IANS, the ICEA chairman, Pankaj Mohindroo, stated that the rise will likely be detrimental to the imaginative and prescient of digital India. “Consumption will be stymied and our domestic consumption target of $80 billion (Rs 6,00,000 crores) by 2025 will not be achieved. We will fall short by at least Rs 2,00,000 crores”, he stated.

The company additionally wrote a letter to the Finance Minister, urging her to roll again the proposed hike, saying that the GST fee hike at a time when the sector was already affected by supply-chain disruptions due to the coronavirus outbreak in China, will make issues even worse.

Xiaomi’s India head, Manu Kumar Jain, was additionally predictably dissatisfied with the choice, saying that the hike “will crumble the industry”. In a tweet over the weekend, Jain requested the PM and the FM to rethink the choice, saying that even when the federal government does determine to go forward with it, “At least all devices under Rs. 15,000 must be exempted from this”.

Meanwhile, Navkendar Singh, a analysis director with IDC India, additionally concurred with Mohindroo and Jain, saying that the GST hike is unhealthy information for all stakeholders. Terming the transfer as detrimental to the imaginative and prescient of ‘Digital India’, he stated: “This is a textbook case of missing the wood for the trees. This will stunt any hope of growth in the near-term, which anyway looks challenging now due to coronavirus issue at both supply and demand ends”.

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