Just a week after Apple India had asked for additional tax benefits, the Indian government has quite ruthlessly rejected their request.
For now, the rejection is only partial, meaning that the Government has only rejected additional rebate on the import of goods/parts. So, for now, other concessions requested by Apple India are still open for debate. However, given the swiftness with which the government has denied this, it seems unlikely that the other demands will be met.
The Economic Times reports —
“The demand was rejected on grounds that already, zero basic customs duty, excise duty — except on charger, battery and speaker — and special additional duty (SAD) had been prescribed for components and accessories for final manufacture of mobile phones, tablets and computers.”
Yup, that’s sad. Really SAD!!
However, on the flip side, Apple India’s competition will also be subjected to the same tax as them, irrespective of where the phones are manufactured. According to the new GST rules introduced from last month, all mobile phones, regardless of their place of manufacturing, will bear the same, universal, 12% tax rate.
Sitharaman also told the Lok Sabha that all existing exemption from excise to CVD will also be reviewed by the GST Council. With effect from July 1, both domestically manufactured and imported mobile phones attract 12% GST.
The introduction of GST has seriously muddled Apple’s plans in India. A large part of their success now depends on these grants that they are asking of the Government. And the earlier Apple gets them, the better!