Mobile Makers Seek GST Cut to 5% as Smartphone Prices Surge
What Happened
India Cellular and Electronics Association (ICEA), representing companies including Apple, Xiaomi, Oppo, Vivo, Dixon and Lava, has urged the government to reduce GST on mobile phones from 18% to 5%. The industry says handset demand has weakened as memory component prices have surged, pushing entry-level smartphone prices up by 35-45% over the past year.
Key Takeaways
The industry argues that a lower GST rate would make smartphones more affordable, support upgrades from feature phones, and boost demand in rural and lower-income markets. The proposal is expected to be taken up at a future meeting of the GST Council.