IT Ministry will meet with mobile phone manufacturers to receive Budget input for GST Rates

This week, the Ministry of Electronics and Information Technology is expected to meet with mobile phone and related component manufacturers to explore possible methods to reduce levies such as the Goods and Services Tax (GST). The meeting will take place before the GST Group of Ministers (GoM) meeting on November 27, according to sources.

In previous discussions, phone and related component companies warned the Ministry that the 18 percent GST on mobile phones had “led to very expensive prices,” and that it should be reduced to 12 percent.

“We are aware that there are certain concerns. We’ve had a few meetings before and know what we need to do. A senior ministry official stated, “We’ll have a couple more meetings to work out how to best rationalize these fees.” According to reports, the Ministry is likely to urge industrial associations to prepare a report on their budget needs during its discussions with them.

Mobile phone and affiliated component companies have advised the IT Ministry in meetings over the last few weeks that the 18 percent GST on mobile phones has “led to very high expenses” and that it should be reduced to 12%. They’ve also requested that the GST rate on associated components be cut to 5%.