Don’t increase GST rate on mobile phones: ICEA

Our Bureau | Updated on February 20, 2020

The India Cellular and Electronics Association (ICEA), which represents handset makers and electronics industry, has appealed to Telangana Chief Minister KS Chandrashekar Rao to not increase GST on mobile phones.

Referring to a proposal that seeks to increase the GST on mobile phones to 18 per cent from 12 per cent now, it said any increase in taxes would adversely impact the penetration of mobile phones in India.

“It would impact several Digital India initiatives and e-governance programmes,” Pankaj Mohindroo, Chairman of ICEA, said in a statement.

In a memorandum, he asked the State government to retain the 12 per cent slab on handsets.

Stating that mobile phone manufacturing in the country has picked up following the Make in India initiative of the Union government, it said there had been tremendous growth in the mobile manufacturing sector in the last five years.

“While the market demand for mobile handsets stood at ₹57,000 crore in 2013-14, it grew to ₹1.8-lakh crore in 2018-19,” he said.

Published on February 20, 2020

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