Both locally-made and imported mobiles will attract 12% GST

Providing a clarification about Goods and Services Tax (GST) applicable for mobile phones, the government on Monday has said that domestically manufactured cellular mobile phones and imported cellular mobile phones and also parts for manufacture of phones attract 12% GST.
 
It further said that the government has received representations seeking concessions including 30% local sourcing of component, duty exemption on manufacturing and repair units, components, capital equipment and consumables for smart phone manufacturing and service/repair. With a view to promote domestic manufacturing capacities and value addition, it has further been provided that this relaxation will be valid for an initial period of three years from the opening of the first store, and thereafter such entities will be required to meet the domestic sourcing norms. 
 
Moreover, under the GST regime, 10% Basic Customs Duty (BCD) has been imposed on cellular mobile phones and their specified parts namely charger/adapter, battery pack, wired headset, microphone and receiver, etc. Further, exemption from BCD has been provided for inputs and raw materials for manufacture of all parts of cellular mobile phones, it added.