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Smartphones May Get Expensive from April 1 as Govt Hikes GST Rate to 18% from 12%

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The new rates will come into effect on April 1, 2020.

  • News18.com
  • Last Updated: March 14, 2020, 7:42 PM IST
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At its 39th meeting held today (March 14), the GST Council headed by Finance Minister Nirmala Sitharaman, has hiked the Goods and Services Tax (GST) rates on mobile phones and allied parts from 12 percent to 18 percent.

The Council corrected the inverted duty structure that was being faced by the industry. It has also rationalised the GST rates on handmade and machine-made matchsticks to 12 percent and slashed GST rate on Maintenance, Repair and Overhaul (MRO) services of aircraft from 18 percent to 5 percent.

"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," said finance minister Nirmala Sitharaman.

The new rates will come into effect on April 1, 2020.

"The 6 per cent GST increase will be detrimental to the vision of 'digital India'," said Pankaj Mohindroo, ICEA Chairman. "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," he said.


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