Next Article
Phone makers want GST slashed to just 5%
India's mobile phone industry wants the GST on handsets slashed from 18% to 5%, saying the high tax has cost them ₹81,800 crore since 2020.
This push comes even as India stands as the world's second-largest phone maker.
Smartphone sales have flatlined since 2021
Smartphone sales have flatlined at about 150 million units a year since 2021, and companies say lower taxes could make devices more affordable and revive growth.
For context: before GST arrived in 2017, phones were taxed at just 6%, but rates jumped to 12% and then shot up to today's 18%.
Despite record production and exports—₹5.45 lakh crore made and over ₹2 lakh crore exported this year—the industry warns that staying competitive will be tough if taxes stay this high.