GST hike on mobile gives govt more as compared to PLI outlay: Industry

New Delhi, June 10 (KNN) The 6 per cent GST on mobile phones has collected Rs 42,897 crore over the last 3 fiscal years which is higher than the Rs 39,000 crore outlay of the production-linked incentive (PLI) scheme, said the industry executives. 

The manufacturers have written to the Ministry of Finance pointing out this data and stating that it makes the government scheme self-sustaining.

India Cellular and Electronics Association (ICEA) said that the five-year smartphone PLI scheme will leave a revenue surplus of Rs 11,000 crore if only the Centre's GST collections are taken into consideration.

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.

As per the industry body, over the last three financial years-- FY21 to FY23--the incremental GST of 6% has resulted in an additional cumulative revenue of Rs 42,897 crore. The total GST on mobile phones for the three-year period stood at Rs 1,28,691 crore.

“Currently, since only Rs 1,644 crore has been claimed as part of the PLI scheme till March 31, 2023, the incremental GST has created a surplus of Rs 41,253 crore,” the ICEA said in the letter addressed to revenue secretary Sanjay Malhotra.  (KNN Bureau)