India Cellular & Electronics Association (ICEA) has dependably moved in the direction of the enhancing the ‘Ease of Doing Business’ and decrease the cost trouble on the portable handset industry to make it increasingly relative. ICEA is happy to report that their endeavours to give illumination to the business on GST rate on Power Banks has yielded an outcome.
Power bank industry was facing severe classification challenge from the GST authorities, which could have disastrous & grave consequences for the industry. The GST authorities have conducted surveys at a few power bank manufactures. ICEA considered assessment was that lithium-ion power banks fall under HS 8507 60 00 and post accepting the illumination from TRU, ICEA as the summit body of the mobile handset and component industry has effectively drawn out the business players out of the superfluous agony. ICEA additionally needs to highlight that even the US and European Union sentiments likewise recommends that the Power Bank fall under HSN 8507 6000.
Commenting on the clarification, Mr. Pankaj Mohindroo, Chairman, India Cellular & Electronics Association (ICEA) remarked, “We welcome the move that the GST council has clarified that the rate of GST on Lithium-ion power bank is 18%. It has been ICEA’s technical interpretation that Lithium-ion power bank merits classification under Lithium-ion accumulator (HS code 8507 60 00) and GST @ 18% is applicable, although it was attempted to misclassify Power banks under HS 8507 80 00, GST @ 28%. At least now the path for the future is clear & this will allow the industry to function smoothly”
Mr. Mohindroo added, “India consumes about 33 million power banks a year worth about Rs. 2,000 crore. Currently, most of the Power Banks are imported and can be easily substituted by Power Banks made in India. Keeping this in view, ICEA has proposed a Strategy for a making India a global hub for manufacturing Power Banks to the Ministry of Electronics & Information Technology (MeitY). Given the right policy prescription, by 2025 the Power Banks can be built into Rs 18,000 crore industry, generate 80,000 jobs in India & exports can touch Rs. 5,800 crore”.
Before the clarification received, the GST authorities were insisting that power bank should be classified under: “Electric Accumulators, including separators thereof, whether or not rectangular (including square) – other accumulator” – HS 8507 80 00, whereas most of the industry classifies it under “Electric Accumulators, including separators thereof, whether or not rectangular (including square) – Lithium-ion” – HS 8507 60 00. The implication of this classification maize was that the GST rate applicable on “Electric Accumulators……. – Others” – HS 8507 80 00 is 28% whereas the GST rate on “Electric Accumulators…. Lithium-ion” HS 8507 60 00 is 18%.