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India GST -Cheaper Smartphone & Higher Mobile Bill

The finance ministry led committee came out with four slab based tax on goods and services to reduce the complex taxation system of India. On the one side it's a welcome step to attract FDI as well as for the movement of goods within India.

Based on the article published in one of the leading newspaper that Smartphone will attract lower tax rate given the fact that Indian Government want every citizen of India to use Smartphone and experience seamless digital India.  On a contrary, the mobile bill will be increased as higher tax imposition under service tax slab. Government indirectly increased service tax to 18% which will hit the mobile phone user pocket.

What I am going to do with my Smartphone when I know that the usage will hit me hard at the end of day.

I can also understand that governments don’t want to lose valuable tax revenue from Telecom sector.

In my point of view, mobile communication should be placed as basic services and should be taxed with lowest tax slab so that bill amount goes down and ultimately network usage goes higher.

What do you think? Please drop your comment.

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About Devendra Prasad

20 years plus industry veteran of domestic and international ICT domain with the expertise in Business, Technology, Strategy and Analysis. Specializes in forecasting impact analysis, trends and recommendations for Investments, Technology and Regulations.
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