In the wake of the historic tax reform, Goods and Services Tax (GST), mobile retailers all over India seem confused and have switched to the immediate safety measure, which is to limit smartphone stocks in store. According to a report by The Economic Times, mobile stores have been left hanging for prices of the new stock that is yet to enter the mobile markets. So as a precautionary measure, have kept the number of stocks to a minimum to avoid losses once the dust settles.
The government has slated mobile phones at a tax slab of 12 percent. Additionally, it has added a ten percent basic custom duty on imported goods.
The report said that stores like Reliance Digital and Chroma saw a smooth transition, thanks to the teams that manage the invoicing and pricing. With smaller retailers, things get difficult. The smaller retailers are expecting a smoother transition within a week or ten days, as per the report.
According to the PTI, the government seems to be inclined to give 'Make In India' a push. Thereby, it has put the basic custom duty at 10 percent for imported products and thus, encouraging local manufacturing units. However, in the wake of the rollout, Apple had slashed the prices of both iPhone and iPad. And, prices for ASUS are expected to be cut as well.
Despite a smoother transition to the new pricing system, there has been a five to ten percent decrease in footfall. The taxation system which was released on 1 July has created a ripple effect in various other sectors as well.
Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
Published Date: Jul 03, 2017 13:27 PM | Updated Date: Jul 03, 2017 13:27 PM