TS Govt Slashes VAT to 5% On Cellphones, Mobiles to Become Cheaper

[Dipika Menon]

The Telangana State government slashed VAT on cell phones in the state to 5%. Currently, the VAT on accessories and parts of cell phones is 14.5%. With this the consumers in Telangana are purchasing mobiles from the grey market and dealers in neighbouring states.

The commercial taxes department has given approval to the reduction in VAT to encourage direct sales in the Telangana state and stop trade diversion. K. Chandra Sekhar Rao-led Telangana state government passed the bill in its state assembly by drafting the necessary changes in the VAT Act.

This slash in VAT will give Telangana state government a profit of 5 crores to its treasury due to the increase in mobile sales.

[Vikas Jadhav]

@Dipika–Menon

That’s a BIG news for mobile phone users. Instead of 14.5% VAT, now one needs to pay only 5% VAT on the purchases of cell phones.

Definitely, it’s a welcome move to pass the amendment bill of Telangana VAT Act in the state Assembly. Currently, the mobile purchases are being diverted to the firms registered in AP as the neighboring state levies 5% VAT on the cell phone items.