No Relief for Smartphones Sector After GST Return Filing Deferment

The government denied giving any additional relief to the mobile sector apart from extended due dates in filing the returns. The sector will face a 6% hike in the rates that will add on to the already worsened situation due to the COVID-19 outbreak. The government’s only relief to the mobile manufacturers is an extension in the due dates for filing the GST returns till 30 June 2020. The entire list of handsets sold after 1 April 2020 will invite 18% GST from the current 12%, said sources.

The sector sought six months deferment in the payment of GST Check out due dates of payment under GST for general and composition taxpayers in India. We have included penalty charges on late payment with interest. Read More to cover the losses faced amidst the corona outbreak, the due date extension is not enough to revive the sector income.

As per the market analysis, even after the 21 days lockdown is over, it will take at least six months for the sector to revive and for the demand for handsets to enhance. The renowned smartphone manufacturers like Realme and Samsung have declared that the hike in GST rates will be carried forward to the end consumers.

As per the analytics, the estimated progress rate of the sector has stepped down to 5.5% from earlier 8%. An increase in the GST rates for smartphones Check out the GST rate on mobile phones, chargers and its accessories along with HSN code in India. The mobile phone HSN code is 8517 along with 12% GST rate. Read More along with fluctuations in the rupee-dollar rates and downfall in demand due to the COVID-19 outbreak will end up hiking the consumer end prices of the cellphones by 12 to 15%, said Realme.

Realme is trying to cope with the other two impacts but a GST rate hike is undeniably hard to absorb. GST council hiked the rates of the end product to adjust with the inverted duty structure that taxed the components of the more phones more than the end product.

While Samsung and Realme have confirmed hiking prices for smartphones, Xiaomi and Vivo have yet to take the decision, said Arvinder Khurrana (president All India Mobile Retailers Association). Hike in the rates of smartphones might lead to job losses and might also hinder the pace for India to become a huge smartphone manufacturing hub.

To Be Noted: Amidst the coronavirus calamity, FM Nirmala Sitharama has provided relief to businesses with an annual turnover of less than Rs. 5 Crore as they can now file the GST returns Get to know the online procedure of filing GST return in India. Also, we provide each and every GST form according to the taxpayers and category. Read More for March, April and May by the end of June with no additional charges or penalties.