The Goods and Services Tax (GST) Council may raise the rate on mobile phones to 18 percent from the current 12 percent, according to a report by The Economic Times.

The GST Council is likely to consider a proposal to raise the rate on mobile phones at its meeting on March 14, the report said.

"The inverted duty issue on mobile phones has been brought up several times… it can be taken up this time," an official told the publication.

Moneycontrol could not independently verify the story.

A GST rate hike on mobile phones will raise the cost for the consumers. Some components used to manufacture cell phones have a GST rate of 18 percent, and the industry has demanded a cut to 12 percent, ET reported.

"Parts of printed circuit board assembly (PCBA) and other sub-assemblies or components are not being considered as parts of mobile phones and are therefore being charged GST at 18 percent, which needs a correction," said Pankaj Mohindroo, the chairman of the Indian Cellular Electronics Association (ICEA).

On March 14, the GST Council is also expected to discuss deferment of e-invoicing and QR code benefits, the report added.

A separate report by PTI said the GST Council would rationalise costs on five sectors, including mobile phones, footwear, and textiles.

Finance Minister Nirmala Sitharaman, who heads the GST Council, will likely discuss operational glitches on the GST Network (GSTN), PTI reported.

 13 Mar 2020, 09:57 AM