The Government of India is enforcing goods and services tax of 12%, as the result of that mobile phone will become almost 4 to 5% expensive. They are withdrawing the benefit of differential duty that was being offered to domesticmanufacturers. The Government must have to offer some incentives to the domestic manufacturers from July 1, to assure that ‘Made in India’ is still alluring phrase for contact manufacturers.

“Made in India” Mobile phones are expected to become costly from July 1.

BipinSapra, partner looking at indirect taxes told that “the prices of mobile phones that are imported into India are expected to be reduced; on the other hand mobile phones that are locally made their prices may be increased.”However, phones Made in India will get more costly, as they pay around 7.5-8 percent currently but with GST, these phones will also fall under the 12 percent slab. So, it will make for the brands more appealing to manufacture their devices outside the country.

In the first quarter of 2017, roughly four out of five mobile phones shipped were made in India, pointed out Counterpoint Research. The enforcement of the GST will have an impact on domestic manufacturing and the government will need to continue incentives for locally manufactured mobile phones to further push the domestic manufacturing ecosystem.