The Ministry of Electronics and Information Technology is likely to meet mobile phone and allied component makers to discuss over rationalisation of Goods and Services Tax (GST) on 27th November, 2021.
However, in meetings over the last few weeks, mobile phone and allied component makers have told the IT Ministry in their submissions that the levy of 18 per cent GST on mobile phones had “led to very high costs”, and should be brought down to 12 per cent and also GST on allied component be reduced to 5 per cent.
In this regard, a senior ministry official has said, “There are some concerns we are aware of. We had some meetings in the past and we understand what we need to do. We will have a couple of more meetings to figure out how to best rationalise these levies.” In its meetings with the industry associations, the Ministry is also likely to ask them to prepare a report on their demands from the Budget, sources added.