GST effect: Xiaomi hikes price of all Redmi, Mi phones in India

GST effect: Xiaomi hikes price of all phones in India

Earlier last month the Goods and Services Tax (GST) Council announced a hike in the rate of tax on mobile phones. The Council said that the GST on phones will go up to 18 per cent from 12 per cent. Due to this GST revision, smartphones are bound to get expensive in the country. Back then Xiaomi didn’t seem quite happy about the GST revision and now the company has announced that all its smartphones will get expensive starting today, April 1.

The smartphone brand said, “We would like to share an update regarding the recent GST revisions announced by the Government of India. GST rates on mobile phones have increased by 50 per cent from 12 per cent to 18 per cent effective 1 April 2020.” Providing more clarification of the price hike Xiaomi said, “Indian Rupees has depreciated significantly against US Dollars. Since we maintain less than 5 per cent profit margin for all our hardware products, we have no option other than to increase prices.”

Xiaomi hasn’t specifically announced the new prices of its phones available in India. Due to the COVID-19 crisis in the country smartphone companies have stopped selling phones. Brands have announced that their offline retail stores, as well as online e-stores, will be shut until the Indian government lifts lockdown on April 14. “The new prices will be in effect starting midnight April 1, 2020 and will reflect on,” Xiaomi said

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