Phones manufacturers increases price of smartphones - GST Council 2020

Xiaomi, Realme, Oppo and other manufacturers increases smartphone prices

Smartphone makers increases smartphone prices due to increase in GST on smartphones. GST on smartphones is changed from 12% to 18%.

GST Council - 14th March 2020

Government Service Tax is increased on Footwear, Textile, Fertilizer, mobile phones and many other products. This decision had been taken by GST ministers in council held on 14th March, 2020. This decision was taken by minsters to overcome and rationalize the loss for the manufacturers. 

Actually the manufacturers has to pay 5% to 12% tax in finished products and 18% to 28% tax rate on Input and raw materials required in manufacturing these products. So to overcome such a difference and rationalize the tax for manufacturers the government increases GST on them.

The effect on phone prices 

The smartphone prices increases by Rs. 700 to Rs. 5000 depending upon their MRP. This could be proved to be a great loss to consumers as they always try to buy smartphones with the lowest price possible. Let's look at the price change in smartphones.

S. No.                            Previous          New 

                                      Price               Price

1.  POCO X2.              Rs. 15,999.      Rs. 16,999    

2. Realme 6.              Rs. 12,999.      Rs. 13,999

3. Realme 6 Pro.       Rs. 16,999.      Rs. 17,999

4. Redmi K20.           Rs. 19,999.       Rs. 21,999

5. Honor 9X.             Rs. 12,999.       Rs. 13,999

6. Iphone 11.            Rs. 64,900.        Rs. 68,300

*All the prices mentioned above are of base variant of devices. 

*The order  passed to change the price was on 14th March, 2020 and implemented from 1st April, 2020. Because from 1st April new financial year starts. 

I hope this information helps you :) 

Thanks this is Dhruv signing off 

Any wrong information or suggestions? Do let us know on dhruvu455@gmail.com 

Team Technical Ponder