TMI BlogTelephones and RadiosX X X X Extracts X X X X X X X X Extracts X X X X ..... TELEPHONES : As per GST rules, Mobile Phones are classified under Clause 1 of Heading 8517 (Page 175). So GST rate is 12%. At the same times, Landline Phones (corded phones) are under Clause 7 of Heading 8517 (Page 177). So GST rate would be 18%. Presently Landline phones are under Heading 8517 and VAT is 5%. For MSME units, with turnover less than 1.5 Crores, Central Excise is exempted. N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow everyone including MSME will have to pay 18% GST on Landline Phones. Cost of these telephones generally between ₹ 300 - 700. Mobile phones are with 12% GST. Please clarify this anomaly. AM/FM RADIOS : Presently these Radios which are generally indigenous products are made by small units in MSME or tiny sectors. Price range is between ₹ 200 600. VAT is 5%. For MSME unit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, with turnover less than 1.5 Crores, Central Excise is exempted. These types of radios because of low prices, are very popular in rural areas especially after the Prime Minister s Mann Ki Baat programme. Now we understand radios are classified under Clause 18 of item 8527 (Page 179). Therefore GST rate would be 28%. So from VAT 5% it will become 28% GST. Kindly clarify if our contention ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is correct. Regards, Capt Kuldeep Khera email: [email protected] - Reply By MARIAPPAN GOVINDARAJAN - The Reply = The tax rate is higher than the present system. Your contention is correct and the cost of the products mentioned by you will be increased. We may hope that changes may be there at the time of finalization. - Telephones and Radios - Query Started By: - Kuldeep Khera Dated:- 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -6-2017 Goods and Services Tax - GST - Got 1 Reply - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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