India Cellular & Electronics Association (ICEA) has appealed to the Telangana government not to consider any proposal relating to increasing GST rate on mobile phones.
Noting that there is a proposal to raise GST rate on mobile phones from the existing 12% to 18%, the ICEA said the move would have wide ranging, adverse impact on penetration of mobile phones. In turn, that would impact the multiple service offerings and core programmes of the government under the Digital India platform. Besides retaining the 12% GST rate on handsets, the inverted duty structure should be reversed by putting GST on all components and accessories of mobile phones at not more than 12%, a release from the association said.
Chairman of ICEA Pankaj Mohindroo said increasing the GST will affect the purchasing ability of people. As it is, in majority of the States, consumers resent the GST rate of 12% because they were charged VAT rate of 4%-5% till June 2017.
