The global economic slowdown and the Corona Virus pandemic have already made everyone’s life across the world a tough one. To add to it, the prices of the smartphones in India are to plunge a bit as the Indian government plans to increase the Goods and Services Tax (GST) applicable on them.
The GST Council has hiked the GST rate on smartphones from the existing 12% to 18% which will increase their Maximum Retail Price (MRP) in India. The decision was taken by the GST Council in a meeting held in the national capital, Delhi, on Saturday, March 14. The move is likely to affect the livelihood of each Indian as smartphone has become an essential part of everyone’s life.
The GST Council approved the hike citing smartphone industry less impacted by the economic slowdown in the Asian countries. On the other hand, the council disapproved the proposal to hike the GST on the fertilizers and footwear products citing the slumping economy and Corona Virus pandemic.
India’s Cellular and Electronics Association (ICEA) and Mobile retailer’s association had earlier urged the council to set aside it’s contemplation on the tax hike. The industry bodies had appealed against the increase citing low margin as well as the decision being detrimental for consumers’ sentiments. However, the GST Council cornered their concerns and took the bold step.
The decision may have disappointed the smartphone lovers in the world’s third largest smartphone market. However, the growing price is anticipated to remain a neglected factor given the increasing craze among fans to carry a latest smartphone. Let’s hope the smartphone fans in India take this news in the right spirit and remain loyal to the smartphone world.