New GST rates come into effect: These are the new smartphone prices, even though you can’t buy them

By: Tech Desk | New Delhi |

Updated: April 1, 2020 10:45:37 am

GST increase on mobile phones: Major companies including Apple, Samsung and Xiaomi have increased smartphone prices in India.

In the midst of national coronavirus lockdown, smartphone prices have gone by up to 6 per cent as a result of the hike in GST of smartphones and certain components from 12 to 18 per cent. Apple, Samsung and Xiaomi have already announced revised prices, while other mobile manufacturers are expected to follow suit soon.

The price of Apple’s iPhones has increased by 5.2 per cent. For example, the iPhone 11 Pro now starts at Rs 1,06,600 (up from Rs 1,01,200), whereas the base model of the iPhone 11 cost Rs 68,300 (up from Rs 64,900). Meanwhile, the iPhone XR now starts at Rs 52,500 (up from Rs 49,900).

Similarly, Samsung has also increased the prices of its Galaxy smartphones in the country. The Galaxy S20 Ultra now costs Rs 97,900, up from Rs 92,999. The Galaxy S10 Lite is now priced at Rs 42,142, up from Rs 39,999.

Xiaomi, India’s largest smartphone maker by volume, has also raised mobile phone prices in India. In a press note, Xiaomi said the company had no choice but to pass on the additional costs onto consumers. Manu Kumar Jain, managing director of Xiaomi India, had earlier opposed the move by the government and had said that the GST hike will badly impact the mobile industry in India.

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India Cellular & Electronics Association (ICEA), India’s industry body representing the electronics sector, had also demanded an urgent rollback of the increased GST on mobile phones. The ICEA had said the mobile phone industry is under stress because of disruption in the supply chain due to Covid-19 and the increase in GST would “devastate” the sector. ICEA has Apple, Foxconn, Vivo and Oppo among its members.

Sales of smartphones and other electronics products have been banned after the central government ordered a nationwide lockdown for 21 days, limiting the movement of people in a country of 1.3 billion.

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