• Source:JND
HighLights
  1. GST Council to consider mobile phone tax cut on September 12.
  2. Proposal aims to reduce GST from 18% to 5% for handsets.
  3. Lower tax could make smartphones more affordable for consumers.

Jagran Correspondent, New Delhi: Smartphone buyers could get some relief as the GST Council is expected to consider a proposal to reduce the Goods and Services Tax (GST) on mobile phones at its upcoming meeting on September 12.

The 57th meeting of the GST Council will be held in New Delhi, where the council may discuss cutting the GST rate on mobile handsets from the existing 18 per cent to 5 per cent . If approved, the move could help lower smartphone prices at a time when rising memory chip costs have pushed up handset prices and weighed on consumer demand.

The council may also discuss measures to simplify the GST return filing process and address some of the challenges businesses continue to face under the current system, particularly those related to input tax credit (ITC).

GST Council May Consider Simplifying GST Returns

According to Jagran.com citing sources, the upcoming GST Council meeting may consider simplifying the GST return filing system along the lines of income tax returns.

The council may also discuss allowing taxpayers to file GST returns and make payments within a specified time period. The proposed changes are aimed at making GST compliance easier and reducing the difficulties faced by businesses while filing returns.

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GST on Mobile Phones May Be Reduced

One of the key proposals that could be discussed at the September 12 meeting is a reduction in the GST rate on mobile handsets.

Mobile phones currently attract 18 per cent GST. However, smartphone manufacturers have been seeking a reduction in the tax rate to 5 per cent , arguing that the move could help make handsets more affordable for consumers.

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The demand comes at a time when the cost of memory chips has risen sharply. Chip memory prices have reportedly increased by more than 400 per cent over the past year. The steep rise in component costs has contributed to an increase of up to 20 per cent in mobile handset prices, putting pressure on sales.

If the GST on mobile phones is reduced to 5 per cent , the lower tax rate could directly reduce the overall price of smartphones.


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