The Goods and Service Tax council of India decided to increase the GST rate on Mobile phones and in its 39th meeting. Taking place on Saturday, the meeting’s decision also decided to include the price of specific mobile parts to 18 percent.
Moreover, the GST Council also decided that late fees will not be levied because of delay in filing the annual return and reconciliation statement for 2017-2018 and 2018-2019 taxpayers who have an aggregate turnover of less than two crores. This move will likely benefit small businesses. However, it was also decided that delayed GST payments will attract interest on net tax liability from July 1.
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The move is likely to bump up the prices of mobile phones starting from April 1, 2020, reported PTI. As of now, the tax slab on mobile phones and spare parts stands at 12 percent. However, this number will now go up to 18 percent from next month. The meeting was chaired by Finance Minister Nirmala Sitharaman. During the meet, the prices of Maintenance, Repair, and Overhaul (MRO) of aircraft was also changed. The prices now fall below the 5 percent tax slab, instead of the current 18 percent.
The minister also decided to extend the deadline for filing the GST9R and GSTR9C for the year 2019-20 till June 30. This was originally dated at March 31. Filing this will be mandatory for taxpayers who have an annual turnover of over Rs 5 crore. Earlier this limit was at Rs 2 crore, reported CNBC-TV.
The rise in mobile phone prices comes at a time when the electronics industry is already taking a hit. The first reason for this is the ongoing economic slowdown. The other is the coronavirus pandemic that has affected the supply chains of many countries. Hitting over 110 countries across the globe so far, the pandemic that still has no cure has delayed events and conferences. It is also responsible for the disruption of the manufacturing side of the industry.