The Hush Post | 8: 30 pm | One-minute read |
Come April 1 and smarphones will become even costlier. The cost will increase as the GST Council has hiked the Goods and Services Tax (GST) rates on mobile phones and allied parts. The Council, headed by Union Finance Minister Nirmala Sitharaman hiked the GST rates on mobile phones and allied parts from 12 percent to 18 percent.
In its 39th meeting held on Saturday, the GST council corrected the inverted duty structure that the industry faced. The Council also rationalised the GST rates on handmade and machine-made matchsticks to 12 percent. Besides, the GST body slashed GST rate on Maintenance, Repair and Overhaul (MRO) services of aircraft from 18 percent to 5 percent.
Finance minister Nirmala Sitharaman said, “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”.
However, some has touted the 6 percent hike as detrimental to the vision of ‘digital India’. ICEA chairman Pankaj Mohindroo said, “Consumption will be stymied and our domestic consumption target of $80 billion (Rs 6 lakh crore) by 2025 will not be achieved. We will fall short by at least Rs 2 lakh crore”.