Electronics firms seek tax rationalisation, removal of small ‘nuisance’ tariffs

New Delhi: The electronics industry wants the government to rationalise tariffs and remove what it called small “nuisance” tariffs of 2.75% on parts and components of mobile phones, sub-assemblies, and mechanics, and reduce Goods and Services Tax (GST) to 12% from 18%.

In a letter to the government, India Cellular and Electronics Association (ICEA), representing major electronics manufacturing companies, also sought that the 20% basic customs duty on high-end phones be capped to Rs 4,000 per device, in a bid to check smuggling of high-end phones, which it said will add Rs 1,000 crore to the GST collection.