GST mode prevented Apple from taking a larger piece by itself

The iPhone manufacturer presented the government with special incentives to reduce indirect taxes as well as relaxation criteria for component supplies for Bangalore’s local plants. Excerpt from the industry policy and indirect taxes The Goods and Services Act will come into force as of July 1. The government of India has refused to offer special incentives to support Apple. Based in Taiwan, it is establishing a unit in Bangalore to manufacture the iconic iPhone. The Taiwanese company Winstron will produce Apple’s iPhone at its facilities in Bangalore. . The unit, located in the Peenya Industrial Park, was the first global brand in Asia outside of China and it took several months of continuous negotiations to determine the location of the Karnataka government. Your location here. Units ready to reach the first batch of assembled iPhone in India are expected to hit stores in early June this year. In the next two years, device manufacturers will begin to supply up to 30% of the local components. Apple, in talks with the Indian government, has requested the exemption of many applications for a 15-year special special tax and the reduction of customs duties. As it will import a large proportion of its components, it has requested tariff reductions and concession concessions to establish plants in India. He also asked the government to reduce the pace of procurement rules by up to 30 percent of local ingredients, one employee explained. However, after the review, the Center decided that such special exemptions can not be extended only to one manufacturer such as three foreign telephone manufacturers. Others “Leeco, LG and Hauwei” have been present and adhere to the industrial policy established for this industry. Secondly, in the light of GST effective as of July 1 of this year, DIPP considered that it could not extend special concessions to any company in the industry and wanted to establish it. a level playing field. The government of Karnataka has now said that it is not an obstacle for Apple or its manufacturer Winstron. The Minister of the Union, Nirmala Sitharaman, pointed out that the Center can not change the rules just to adapt to a player because it will be very unfair. Apple’s iPhone has gained a significant market share in the premium category and last year it sold 2.5 million in India through direct sales and packages. from the telecommunications provider s. The price of the Make in India phone is expected to decrease by at least 15 percent, said IT Minister Karnataka Priyank Kharge, who heads talks with Industry Minister RV Deshpande. The presence of Winstronare in Bangalore will also be a big boost for the electronics industry here, he added. . direction clearly defined in the future, ?? Ram said. The group is expected to reach $ 4 million in revenue next year.

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