The Goods and Services Tax (GST) has been in effect in India since July 2017, and it has changed the way we think about taxes. The GST is a value-added tax that is levied on the supply of goods or services, and it replaces the manifold taxes that were levied by the central and state governments. Mobile phones, as an essential commodity, are also subject to the GST. So, what exactly is the GST rate on mobile phones, and what are the factors that affect it?
The GST rate on mobile phones is 18%, which is a favorable rate when compared to other goods and services. However, it is crucial to understand that this rate is not fixed and can vary based on several factors. One of the primary factors that determine the GST rate on mobile phones is their value.
If the mobile phone’s declared value is less than Rs. 1000, then the GST charged is 0%. If the value is between Rs. 1000 to Rs. 25000, the GST rate is 12%. If the value of the phone is over Rs. 25000, then the GST rate is 18%. Mobile phones imported into India are also subject to the GST. In such cases, customs duty and import duty are also added to the value of the phone.
Another factor that affects the GST rate on mobile phones is the manufacturer. Some manufacturers have their own factories in India, while others import their products from other countries. In the case of locally manufactured mobile phones, the GST rate is 18%. On the other hand, if the phones are imported, the GST rate may go up to 28%.
In conclusion, it is essential to understand that the GST rate on mobile phones is not fixed and can vary based on several factors. It is crucial to keep an eye on the declared value and the manufacturer of the phone, and pay the appropriate GST rate. For the end consumer, it is advisable to purchase phones that are manufactured locally to avoid higher tax rates. The implementation of the GST has brought transparency to the tax system and made it easier to do business in India.
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