GST Impact: Mobile and Computers will be Expensive

The Goods and services tax (GST) Council has set new tax rates. The government has implemented GST  effected from 1 July 2017. Four tariff slabs for services will be 5,12,18,28 percent. According to the report, after coming to GST, mobile, DTH and internet service will become expensive.

Its direct impact will be on the smartphone being built in India. Because smartphones being assembled in India due to low duty first were very cheap. But after GST, these handsets will be available with a GST of 12%. On the other hand, the first imported phones came with 17-27% import duty. This means that the phones which are imported and sold in India will be cheap.

However, the calls made in India will become expensive. Because they used to pay 7.5-8 percent tax. After GST, these phones will also come in the slab of 12 percent. Apart from this, the parts of mobile will also be taxed at 12 percent.

This means that phones will be more expensive than before. It is possible that many companies think about making phone out of India again.

Counterpoint Research has said, "In the first quarter, five out of five phones made in the market were made in India. After the GST, the domestic manufacturing sector will be impacted, in such a situation, the government will further subsidize to promote Make in India. Giving will be considered."

The situation is not clear about television and computers right now. Some parts of these products will come in 18% slabs and some 28% slabs will come in. Today, you pay 26.5 percent tax on laptops and televisions. Computer parts have a tax of 10.3 percent. This means that personal computers and laptops can be a little too expensive than before.