According to the official sources, it is not possible for the government to provide tax and duty exemptions on Apple products under the new taxation system. The main aim of implementing new indirect tax regime in India is to boost ‘Make in India’ Initiative and not benefiting imports. Under the ambit of GST, it is not possible to provide separate exemptions to everyone.
According to the official sources, “We have already hiked customs duty on the smartphone, and imports of its parts. So, it is clear that we do not want to encourage imports and rather encourage Make in India. With the Goods and Services Tax (GST) in place, giving separate exemptions to anyone is not possible”
World’s renowned iPhone and iPad maker, Apple has sought several concessions to establish a local manufacturing plant in India. According to the recent sources, the Government has denied to provide exemptions on Apple products. The new taxation system has eliminated a dozen of local levies such as excise, VAT and service tax.
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Previously, iPhone maker, Apple had sought concessions which include duty exemptions on manufacturing and repair units, capital equipment and consumables for smartphone manufacturing and servicing or repairing for the period of 15 years.
The company is trying to establish a local manufacturing plant in India which will helps in reducing the cost of Apple products. Whereas, Apple itself does not manufacture products on its own but gets the work done with the help of contract manufacturers. The company sells its products through its owned retail stores across the globe including China, Germany, US, UK, France and many more authorised retail store in India but it sells products with the help of distributors including Redington and Ingram Micro. Presently, about 90 smartphone companies are manufacturing mobile phones in the country.
