Earlier last month the Goods and Services Tax (GST) Council announced a hike in the rate of tax on mobile phones. The Council said that the GST on phones will go up to 18 per cent from 12 per cent. Due to this GST revision, smartphones are bound to get expensive in the country. Today brands such as Xiaomi, Apple, Poco and Samsung have announced price hike of all its latest phones as well as some of the old devices.
Apple has increased price of iPhone 11 series, iPhone XS series, iPhone X series, iPhone 8 series and the old ones. Similarly, Samsung and Xiaomi have also hiked price of their smartphones in the country. The latest Samsung Galaxy S20 now costs Rs 70,500 while the price of Galaxy S20+ and Galaxy S20 Ultra has been revised to Rs 77,900 and Rs 97,900, respectively.
Commenting on the price hike and revised GST Xiaomi said, “We would like to share an update regarding the recent GST revisions announced by the Government of India. GST rates on mobile phones have increased by 50 per cent from 12 per cent to 18 per cent effective 1 April 2020.” Providing more clarification of the price hike Xiaomi said, “Indian Rupees has depreciated significantly against US Dollars. Since we maintain less than 5 per cent profit margin for all our hardware products, we have no option other than to increase prices.”
Xiaomi hasn’t specifically announced the new prices of its phones available in India. But it did confirm that “the new prices will be in effect starting midnight April 1, 2020 and will reflect on mi.com.” Due to the COVID-19 crisis in the country smartphone companies have stopped selling phones. Brands have announced that their offline retail stores, as well as online e-stores, will be shut until the Indian government lifts lockdown on April 14.