Nirmala Sitharaman (Minister of Finance & Corporate Affairs, Government of India) has recently announced increase in GST (Goods and Services Tax) on mobile phones and its specific parts in India. Previously it was 12% but now companies will have to pay 18%. This revised rule will be applicable starting from April 1, 2020 which could result Nokia phones price hike in India. HMD Global is already struggling for their space in the mobile industry in India and this new rule will surely affect company’s performance. Here’s what Nirmala Sitharaman said :
“Mobile phones and specified parts to attract 18% versus 12%. All other items, if there’s a need to calibrate the rates, to remove the inversion, we can take them up at future, the examination of that can happen at a later time.”
We reached to Nokia Mobile India (Via e-mail) for the company’s stand on this new rule and are waiting for their response. We’ll update this article with company’s stand as soon as they reply to us.
Update (March 15, 6:45 PM IST) :
Nokia Mobile India support team has replied to us but they don’t have any official information regarding Nokia phones price hike. Here’s their reply :
“Further for hike price, we would like to inform you that as of now we do not have any official information regarding hike price on Nokia devices.”
Do you think Nokia phones price hike (if company decide to) in India will affect company’s business in the country ? Tell us your thoughts in the comments section below.
Stay tuned for further updates 🙂