Mobile phone manufacturers have appealed the finance ministry to continue the differential duty structure and the benefits from it. The phone makers fear about the casualty caused after the implementation of the GST in April 2017.
The prominent phone manufacturers believe that the absence of these incentives might risk a manufacturing industry worth Rs 54,000 crore now and will be growing to Rs 94,000 crore by the end of fiscal year.
The Indian Cellular Association wrote in a letter to Revenue Secretary Hasmukh Adhia stating, “We look forward to your kind support in establishing the proposed dispensation in GST and clearing the air on the principle of duty differential in the upcoming GST regime.”
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The association includes the prominent mobile manufacturing companies like Apple, Samsung and Micromax.
Notedly, these phone manufacturing companies were the first one to stand in support of PM Narendra Modi’s vision Make in India call, assuring investments in local assembly facilities across the nation. The local production in the fiscal 2015-16 is valued at Rs 54,000 crore. It actually increased from Rs 18,900 crore in 2014-15. It happened because the government imposed higher duties on imports in comparison to the phone manufactured locally.
The GST regime will witness two components Central and State GST. The Indian cellular association fears that this will let the Make in India programme go unsuccessful if the duty advantages get levied on locally developed handsets.
