ICEA bats for 5% GST for mobile phones

India Cellular and Electronics Association (ICEA) on Tuesday made a passionate plea for mobile phones and components to be placed in the five per cent GST slab reserved for essential goods, arguing the current 18 per cent GST is "regressive".

- TDG NETWORK

The comment comes in the backdrop of the overhaul of eight-year-old indirect tax regime announced by Prime Minister Narendra Modi during Independence Day speech on Friday. The present GST tax rates of nil/zero on essential food items, 5 per cent on daily use products, 12 per cent on standard goods, 18 per cent on electronics and services and 28 per cent on luxury and sin goods will be replaced by two tax slabs of 5 per cent and 18 per cent plus a special 40 per cent top bracket for demerit goods.

In a statement on Tuesday, ICEA urged that mobile phones and components be placed in the five per cent GST slab reserved for essential goods.