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Government imposes a 10 per cent BCD on mobile phones wef July 1, 2017

July 03, 2017

The government has imposed a 10 per cent basic customs duty (BCD) on mobile phones beginning from July 1, 2017. In addition to mobile phones, the levy will also be imposed on specified parts of cellular mobile phones including charger, battery wire headset, microphone, receiver, keypad and USB cable.

However, according to the government, specific parts of mobile phones namely printed circuit board assembly, camera module, connectors’ display assembly, touch panel or cover glass assembly and vibrator motor or ringer would be exempted from BCD. Further, inputs and raw materials used for manufacturing parts of electronic goods, including mobile phones, would also be exempt from the duty.

The move is expected to make imported mobile phones more expensive than domestically manufactured ones. Further, by imposing the 10 per cent BCD, the government has ensured that incentives for local manufacturing would remain intact even under the goods and services tax regime.

Meanwhile, the government has stated that India has not breached any international covenant by imposing BCD on mobile phones.



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