Mobile GST hike gives government more than PLI outlay: Industry Executives

The incremental GST of 6% on mobile phones has raked in Rs 42,897 crore over the last three financial years, topping the nearly Rs 39,000-crore outlay of the production-linked incentive (PLI) scheme for manufacturing of smartphones and making the government scheme self-sustaining, according to industry executives.

In fact, the five-year smartphone PLI scheme will leave a revenue surplus of Rs 11,000 crore if only the Centre’s GST (goods and services tax) collections are taken into consideration, industry body India Cellular and Electronics Association (ICEA) pointed out in a June 5 letter to the finance ministry.