Xiaomi, Redmi and Poco smartphones become expensive, know the reason behind it.
The GST Council last month raised the tax rate on mobile phones in India from 12 to 18 percent. The increased GST slab on mobile phones has come into effect from today, which means that the price of the phone will also increase. Announcing on Twitter, Xiaomi India MD Manu Kumar Jain informed that the price of the company’s phone in India has been increased with immediate effect. The point to note here is that the increased rates are applicable at all Mi, Redmi, and Poco-branded smartphone portfolios offered by Xiaomi in India.
Jain’s tweet informs that Xiaomi does not take more than 5 percent profit on its hardware component, but the increase in GST rate has forced the company to increase the price of its phones in India, or leave the company with no other option. At the moment, Xiaomi has not informed about the new price of its smartphone.
Mi fans, #GST on mobile phones has increased by 50% from 12% to 18%.
After much deliberation & in keeping with #Xiaomi policy of maintaining <5% margin on our hardware products,we will be increasing prices of our products.
New prices will be effective immediately. Thank you! 🙏 pic.twitter.com/mdTqKdXm3r
— Manu Kumar Jain (@manukumarjain) March 31, 2020
However, smartphones with increased prices have been listed on Flipkart. Poco X2 , whose 6 GB + 128 GB model was earlier priced at Rs 16,999, is now listed for Rs 17,999 . Poco India General Manager C Manmohan revealed the new price of Poco X2 in a tweet. The 6 GB + 64 GB variant of Poco X2 is now priced at 16,999, while the 8 GB + 256 GB variant will now be sold in India for Rs 20,999. The price of 6 GB + 64 GB version of Redmi K20 has also been increased to 2,000 on Flipkart, while the price of 6 GB + 128 GB variants of Redmi K20 Pro has also been increased by Rs 2,000.
At the moment, we could not check this new price on Amazon India, because at the moment all products on the platform are “unavailable” except for the item of need. However, smartphones with new prices will soon be listed on the company’s official website. The new GST rates apply to all smartphone brands, so we are also expecting an increase in the price of smartphones from other smartphone companies. However, apart from Xiaomi, other brands have not given any official information about it.