Will you have to pay GST on JIO phone?
It is certain that most customers who like to seek new 4G JIO smart phone will have to pay GST on it or not? With present tax structure it is certain that around 12 percent GST is applicable on telecom products. As Reliance industries have launched the smart phone for free of cost so will 12 percent GST be applicable or not?
Arguments about Reliance JIO in Telecom Industry
- The company has already announced that it shall be offering JIO smart phone with lifetime free voice call features. To obtain the smart phone customers may have to pay a refundable deposit of RS 1500.
- The company has also claimed that he deposit amount shall be refundable back to the customer after three year time period.
- There are chances that telecom operators may not be liable to pay tax, one spectrum usage and license as the service is offered to customers for free of cost.
- It is also certain that imposition of any type of tax or GST on technically free phone would in fact make the phone more expensive for the service providers.
- There were also statements made by telecom representatives that even if the phone is offered free of cost to the customers still some type of tax can be imposed on JIO smart phone. According to the sources it is certain that government may set some basic tax value on the handset for now.
- There are chances that the government may consider offering free handset as a lease deal under which circumstance the government can charge GST according to the leasing rates.
- As the Reliance Telecom has made is clear that the deposit amount will be refundable to the customers after three years so according to lease regulations if the company will get all their smart phones back after three years then no GST will be applicable on it.
- GST would only be applicable in case the company fails to collect all handsets back after three years and refund Rs 1500 to the customers.
- As for now it is still not certain if GST will be applicable on Reliance JIO smart phone or not?