Mobile phones to cost more as GST hiked to 18% from 12% earlier

Mobile phones will attract an 18% goods and services tax (GST) rate from April 1, 2020, up from existing 12%, after the GST Council corrected the inverted duty structure that was being faced by the industry. The Council, however, deferred rationalizing the tax structure of fertilizers, man-made yarn, fibre and footwear, to the next meeting.

“Mobile phones and specified parts to attract 18% versus 12%. All other items, if there’s a need to calibrate the rates, to remove the inversion, we can take them up in future, examination of that can happen at a later time,” said finance minister Nirmala Sitharaman after conclusion of the 39th GST Council meeting on Saturday.