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GST council decided to impose 12% service tax on all mobile phones

Well folks. . this is one important headline which you can't afford to ignore especially when you have planned to buy a new phone as from 1 July, 2017 your favourite smartphone will attract 12% GST(Goods and Services Tax) All taxes are for public welfare and etc but it actually hurts when we have to pay extra from our hard earned money. After all most of us are already tax paying citizens. Hence, after the GST council decided to impose 12% service tax on all mobile phones, your new mobile could cost you atleast 4-5% extra. For example,if the phone costs Rs 10000 then extra cost would be Rs 500 and total would come to Rs 10,500.   
How would Mobile react to GST would be interesting to watch?
The local manufacturers will be affected after GST implementation as they wouldn't get advantage of make in India program.However in order to support the local manufacturers, government might impose 10 % custom duty on imported mobile phones. This will make imported mobiles costlier and hence Indian made mobiles will attract more customers.  As Indian government already levied 12.5% countervailing duty on fully made mobile phones and accessories imported into country.  
Hence, besides the above mentioned measures,  the government also needs to build trust with local manufacturers about GST and its benefits in the Make in India program. Not only with businessmen but also the customers need to be made fully aware about GST and its effects on the Indian economy and how the end customers gain in the whole process as after all,  it is the general tax payer who is made to shell out more money from their pocket. The Indian consumer spending pattern on mobile phones will be interesting to watch out for after GST implementation. Moreover, companies planning to invest and set up manufacturing plant in India might make change in their plans. Well, All is well that ends well and hence, for now we can wait and watch for the prices of our favourite mobile phones.  

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