GST will lower tax burden on medical devices, smartphones: FinMin

Mobile tower companies will pass on their 18 per cent tax burden proposed under the Goods and Services Tax (GST) regime to telecom operators which will lead to costlier phone bills. Thus, the present total tax incidence on smart phones works out to more than 13.5%.

Walmart India president and CEO Krish Iyer said: "At Walmart India, our teams are working diligently to be 100 per cent GST ready in time and we remain committed to help our partners in the whole process for a win-win and smooth transition to the new tax regime".

The exact formulation for Puja samagri including havan samagri is yet to be finalised and presently they have been kept under the Nil category. Further, CST, octroi, entry tax, etc. are also applicable in general.

Shrink wrapped software product (on media) will attract tax rate of 18 per cent, as will Laptops, desktops, peripherals, parts, etc. Monitors and projectors (capable of connecting to ADP) will attract a rate of 28 per cent, while the majority of networking products will attract 18 per cent. As against this, the proposed GST rate for smart phones is 12%.

As against this, the proposed GST rate on medicines, including ayurvedic medicines, is 12 percent. Along with CST, octroi, entry tax, etc., the present total tax incidence on them works out to more than 13 per cent. Referring to the packaged cement, the ministry said it would be taxed at 28 percent under the GST as against 31 per cent on account of different indirect taxes.

"The recent announcement on GST rate of 18 per cent tax levy for telecommunication services will certainly impact the consumer at large", the body said in a statement.

Currently, states impose entertainment tax of up to 100 per cent in respect of exhibition of cinematography films in theatres/cinema halls.

The official said that so far 16 states have passed the State Goods and Services Tax (SGST) bill.

Presently, such service providers are not eligible to avail of input credits in respect of Value Added Taxes ( VAT) paid on domestically-procured capital goods and inputs or of Special Additional Duty ( SAD) paid on imported capital goods and inputs.

The GST Council has approved an exemption upto a consideration for admission of Rs 250 per person.

  • Zachary Reyes