The finance ministry has rejected iPhone maker Apple Inc.’s demand for tax exemptions for setting up a manufacturing unit in India saying that the decision will have to be taken up by the goods and services tax (GST) council.
According to PTI, the minister of state for electronics and IT, P.P. Chaudhary, said in a written reply to the Lok Sabha that the US-based firm has indicated plans to put up manufacturing lines in India this year. Apple had sought concessions such as duty exemption on manufacturing and repair units, components, capital equipment for smartphones for 15 years.
He said that these demands were “examined in the department of revenue and have not been accepted.
He also said that these incentives cannot be accepted as with the coming into force of the new indirect tax regime all imports will be liable to IGST (integrated GST) and any exemptions from CGST (centre)/SGST (state)/IGST can be granted based on the recommendations of the GST council only.
All existing exemptions from excise duty to countervailing duty will also be reviewed by the GST council, he added.
