Mobile handset manufacturers seek GST cut on inputs

New Delhi: Indian mobile handset manufacturers have sought a lower 12 per cent GST on the parts and accessories universe as per the phased manufacturing programme (PMP) roadmap as against the current 18-28 per cent.

“GST applicable on inputs/components/sub-assemblies/accessories of mobile handsets should not be more than that of the GST applicable on the final/end product which is the mobile handset. GST of 12 per cent recommended on the entire list of ‘Parts and Accessories’ Universe as per the PMP roadmap,” the India Cellular and Electronics Association said in its Budget 2020 wishlist.

Currently, the GST rate is either 18 per cent or 28 per cent on parts. The problem has become extremely acute especially after the imposition of 10 per cent BCD (basic customs duty) on Printed Circuit Board Assembly (PCBA) as per PMP, it said.

The PCBA is a key component in the mobile manufacturing ecosystem. It sought continuation of BCD on mobile phones at 20 per cent.

“BCD on mobile phones should continue at 20 per cent, but with a difference. The maximum BCD should be pegged at Rs 4,000. The GST collection will go up by over Rs 1,000 crore and the market environment will become much cleaner and regularised and check smuggling and realization custom duty on declared price more than Rs 20,000,” the body said.

Association Chairman Pankaj Mahindroo said the adverse WTO judgement on export incentives can pour cold water on our great expectations of growth of exports in mobile phones which will hit $4 billion this year. (IANS)

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