Industry and analysts denounce GST rate hike to 18% on mobile phones

Xiaomi MD says move could weaken demand as smartphone makers will be forced to raise prices

At a time when all major handset manufacturers are struggling to cope with disruptions caused by the coronavirus (COVID-19), the Goods and Services Tax (GST) Council has dealt a body blow to the mobile phone sector, industry players said.
 
Notwithstanding falling demand and severe crunch in supply of key mobile components, the council on Saturday announced that the rate of taxation had been raised on “mobile phones and specific parts presently attracting 12 per cent to 18 per cent”.
 
Reacting to the move, Manu Kumar Jain, managing director of Xiaomi India, said the industry had heeded Prime Minister