ICEA requests government to reduce GST rate on mobile phones and components

The Indian Cellular & Electronics Association (ICEA) has requested the government to reduce good and service tax (GST) rate on mobile phones from the current 18 per cent to 12 per cent. Further, they have urged that the GST rate on parts and components should be reduced to 5 per cent.

According to ICEA, the high GST rates on mobile phones and parts and components have subsequently increased the price of the smartphones leading to a fall in their demand.

To this end, ICEA has communicated to various state Chief Ministers (CMs) to reduce GST on mobile phones as well as on parts & components.

As per a joint report published by ICEA and EY, earlier in the pre-GST era, the tax rate prevailed at approximately 8.2 per cent, which was then increased by 50 per cent to 12 per cent GST, which was further increased by 50 per cent to 18 per cent GST.