Science & Technology

Post GST, Made In India Smartphones Set To Be Cheaper

न्यूज़ वर्ल्ड इंडिया | 0
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| July 3 , 2017 , 13:38 IST

The Indian government has decided that the mobile phones that will be imported to India will have 10% customs duty charge on them.

Smartphones that are being made in India are expected to get a push and make an impact on the smartphone market. The customs duty charge tax is also applicable on parts like chargers, handsets, batteries, USB cable, with immediate effect.

Rajeev Jain, Chief Financial Officer and Director, Intex, told PTI, "The duty differential earlier was about 11.5 percent in favour of local manufacturing. But with GST subsuming SAD and countervailing duties, that benefit was taken away. The 10 per cent customs duty will help push local manufacturing once again." Jain further explained, "The (import) quantities, at least for us, is very small and therefore, the customs duty will not make much difference. For the end-customer, there is no impact as he/she pays 12 per cent GST for the handset."

Mahesh Jaisingh, BMR Advisors Partner, said, companies importing handsets were of the view they would have benefited under GST, given the manufacturing duty differential scheme going away. He also added, "Consequently, consumers were expecting (prices of) imported phones (typically the high-end phones which are usually imported) to have come down. However, with the 10 per cent customs duty, the tax structure is again in favour of local manufacturing."

The announcement on the duty came in along with the midnight roll-out of Goods and Services Tax (GST) on June 30, 2017, and July 1, 2017.