Imported phones above Rs 25,000 to cost you more after GST
Jun 10, 2017, 12:14 IST
Come July, when GST gets roll out, you would need to shell some extra bucks to buy a phone that is priced Rs 25,000 plus. Not just smart phones, consumer durables that have a chassis number or any other identification for tracking the product would have the benefit of the special credit transfer scheme n restricted to manufacturers.
This would make all imported products claim deemed credit of 60% or 40% of the central GST paid, depending on the tax rate levied on the products, according to Economic Times report.
The sellers cannot claim credit of the total amount of countervailing duty and additional customs duty paid on such imported goods.
"If the intention is to neutralise the impact of existing central taxes paid on transition stock of high-value items, then logically even imported goods should be covered,” Pratik Jain, leader, indirect taxes, PwC told the ET. "The disparity would mean that consumer electronics, durables and cell phones which are imported would suffer more tax than ones manufactured domestically. The government should surely review this.”
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This would make all imported products claim deemed credit of 60% or 40% of the central GST paid, depending on the tax rate levied on the products, according to Economic Times report.
The sellers cannot claim credit of the total amount of countervailing duty and additional customs duty paid on such imported goods.
"If the intention is to neutralise the impact of existing central taxes paid on transition stock of high-value items, then logically even imported goods should be covered,” Pratik Jain, leader, indirect taxes, PwC told the ET. "The disparity would mean that consumer electronics, durables and cell phones which are imported would suffer more tax than ones manufactured domestically. The government should surely review this.”