Currently, the GST on mobile devices stands at 18 per cent.
The Indian Cellular Association (ICEA), which provided the GST data, projects that GST collections from mobile devices between FY21 and FY26 are expected to reach ₹3.09 trillion over 9-10 times the amount allocated by the government to the mobile device PLI scheme by the end of its tenure. The total PLI outlay for mobile phone manufacturing from FY21 through FY26 is estimated to peak at around ₹34,149 crore.
However, firms eligible for PLI suggest that disbursements might be reduced by 10 percent, closer to ₹31,000 crore by FY26, as many eligible players have not qualified for the incentive.
Pankaj Mahendroo, chairman of ICEA, said, "When PLI schemes were first discussed in 2020, we informed the government that the then 12 per cent GST was more than sufficient to self-fund the proposed mobile PLI.
This story is from the August 09, 2024 edition of Business Standard.
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This story is from the August 09, 2024 edition of Business Standard.
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