GST to reflect in mobile phone rates


Mobile users or those intending to buy new mobile phones, you need not look forward to anything from the Goods and Services Taxes. The GST council has arrived at 18 percent tax towards telecom service which will be increase in 3 percentage points. At present, the tax on telecom services is 15 percent.

This action is made in addition to the 12% service tax imposed on mobile phones. The telecom industry segments are already irked with this raise in tax, and all the major players are bothered by the same. Consumption and investment are resultantly prone to decline.

If the monthly usage gets increased to Rs 1,000, the mobile user will have to pay extra Rs 30 due to this increase in telecom services from 15 to 18 percent, claim reports.

Resultantly, the talk time offered by different mobile network providers may also get hit. As per the reports, mobile phone rates of major brands like samsung, LG, Sony and mobile mobile brands are prone to get increased by 4 to 5 percent because of 12 percent tax rate. Right now, the smartphone makers enjoy a lot of discounts on taxes because of local produces of mobile phones.

Between January and March this year, 59 million mobile handsets got sold. Out of this, 80 percent of them were produced locally to note.