The mobile phone manufacturers have requested the government to expedite the release of incentives. They have received the first tranche of payments.
Dixon Technologies, Samsung, Hon Hai Foxconn and Wistron are the leading players.
The government had earned more than Rs 32,000 crore from GST each year from domestic sale of smartphones since 2020, and has also raised the GST rates and their contention is delay impacts their expansion and hurts them.
The industry has also requested that the paperwork be made seamless and soft touch payment mechanism of incentives be put in place. “Onerous pre audits reduce enthusiasm and the credibility of the incentive scheme. A trust based payout system like self-assessment will be best. Post facto random audit can be instituted,” said Pankaj Mohindroo, chairman, India Cellular and Electronics Association.