The government had increased the GST on mobile phones to 18% from 12% on April 1, 2020, the day the smartphone PLI scheme was announced. The total GST on mobile phones for the three-year period stood at Rs 1,28,691 crore. Calculating that, the incremental GST over the course of the smartphone PLI scheme would be around Rs 1,01,697 crore, the ICEA said. The total GST contribution during the tenure of the smartphone PLI scheme is expected to the tune of over Rs 3 lakh crore. The mobile phone exports have been gradually increasing due to the PLI scheme.

Source: Economic Times June 10, 2023 04:42 UTC