Lava Care

A year after the introduction of GST, the landmark tax reform has done much to minimize the maze of taxes prevalent in India. For years, the Indian mobile industry was hampered by multiple taxes, both Central and State, which even included a tax on a tax! Implementation of GST has helped in streamlining systems, curbing taxes as well as concomitant complications. As the Indian mobile industry sustains its growth trajectory, GST will help facilitate the sector’s expansion, boosting it in the long run. 

Of course, there were some initial hiccups and confusion since retailers were not completely ready to migrate to the new tax regimen while traders were still stuck with old inventory. But once the implementation got underway and the market adopted the new system, things began falling into place. Moreover, under GST, the imposition of 10% basic customs duty on imported mobile phones and accessories has given a fillip to local manufacturing and is in sync with the ‘Make in India’ mission. 

Lava Z91

Moving forward, however, we request the Centre to reconsider the higher GST rates on mobile components such as batteries, earphones, and chargers. Additionally, higher slabs for services and spare parts has made aftersales repairs and maintenance costlier. Review and lowering of these rates will be in the best interests of consumers, connectivity, and the country. 

Overall, we believe GST has benefitted the country by boosting the Ease of Doing Business and improving India’s image as a tax-compliant nation.”