GST: Impact on Smartphone market

Yay! there is some good news now for all smartphone lovers. The Goods and Services Tax is a multi-stage and comprehensive tax launched by President Pranab Mukherjee and PM Narendra Modi. The launch on Friday midnight at the Central Hall of Parliament made the process of taxation transparent and gave a clear and simple view to check black money across the country. The GST will be levied on the value additions at each point of manufacturing chain starting from the very first step of manufacturing till the consumption by the end user. It is a nation-wide tax reform which is introduced to curtail the corruption in our country and bring an end to the discrimination faced by loyal traders and honest businessmen. This historic tax reform will integrate the country into one market under a single taxation system. Moreover, it will function with strict guidelines and provisions, devising an infallible technique to implement this new tax regime. This will not only improve the financial status of our country but also lead to the overall economic development.

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This whole thing about the launching of GST is revolving around government’s Digital India and Make in India campaigns. And to make Digital India a success, Smartphone become the key to proceed with, especially when the government is encouraging the use of digital use of currency.

The introduction of GST has impacted the Indian market on the whole and at the same time, it has brought some good news for the gadget lovers as the tax incidence on the Smartphone has come down making the Smartphone available to the customers at cheaper prices. As mentioned by finance experts, the customers should not worry about the extra burden of GST while purchasing a phone. It is clearly evident that a smartphone currently attracts 2 percent central excise duty and VAT varies from state to state (around 5 percent to 15 percent).Thus, the weighted average VAT rate comes out to be 12 percent. Therefore, this leads to a figure of more than 13.5 percent as the present total tax incident on Smartphone. But the finance ministry quoted against this rate and said that the proposed GST rate for Smartphone is 12 percent. This reduction in the tax rate by 1.5 percent is likely to benefit the Smartphone market. There is a win-win situation for buyers as even if the Smartphone manufacturing companies do not get the desired incentives, they are likely to offer great discounts to lure the customers.

The lowering of the prices of new Smartphones in the market tempts the customers to purchase new ones. InstaCash brings a great deal of benefit for you in this case where you can get the best value of your used Smartphone which would be calculated according to the actual condition of your phone via an automated functionality test, done by InstaCash App. The price offered to you here would be better than what you would get in the actual market. So now it is the time to grab the opportunity when you can even enjoy the great discounts offered by Smartphone vendors and purchase a new Smartphone as well as at the same time, seal the best deal to sell your old/used phone at a much better price with added advantages like home pickup and instant payment facilities.

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