Domestic handset makers to get GST tax shield against imports

Govt seeks to protect local industry without raising customs and contravening terms of ITA

The finance ministry has decided to grant mobile phone manufacturers tax cover almost at par with the current regime under the Goods and Services Tax without the need to raise basic customs duty.

“Under GST, the government has the right to impose tax on imported goods. This is clearly laid out in IGST rules”, said a senior finance ministry official.

The assurance is likely to soothe major concerns of the IT manufacturers who have asked the government to provide them a tax shield against imports of mobiles from countries, especially China. The government wants more companies from India