ICEA urges states not to support any proposal to increase GST rates

India Cellular and Electronics Association (ICEA), the apex body for mobile and electronics industry, has urged all the major states not to support any proposal to raise the GST rate from existing 12 per cent levied on such products at present.

The association has also sent a representation to Union Finance minister not to raise the Goods and Services tax on mobile handsets, officials said on Wednesday.

"We have written to all major states chief ministers and urged them not to accept any proposal to raise the GST rate to 18 per cent," ICEA chairman Pankaj Mahindroo said.

ICEA in its representation claimed that if GST rates were increased it would have an adverse impact on penetration of mobile phones impacting the multiple service offerings and core programmes of the government under the Digital India platform.

GST Council is expected to debate shortly on reducing the four tax slabs that currently exist 5, 12, 18 and 28 per cent to three 8, 18, and 28 per cent.

The move may increase tax revenue for the government by raising taxes on products and services.

ICEA said year-on-year the value of mobile phone market demand has increased from Rs 57,000 crore in 2013-14 to Rs 180,000 in 2018-19, a growth of 315 per cent.

The association claimed that any increase of GST on mobile phones would be like penalising one of the few performing sectors.