What was the logic of raising GST on mobile phones from 12% to 18%?

It was probably to reduce the refund on account of inverted tax rate structure

It was due to the Inverted Duty Structure. The components of Mobile Phones were taxed at 18% whereas the final product - Mobile Phones were taxed at a lower rate of 12%. So a huge amount of ITC was getting accumulated due to this Rate difference. This is called "Inverted Duty Structure". The Suppliers were required to claim for Refund, which is a tedious and time consuming process. Due to this reason a huge amount of Working Capital was getting BLOCKED.

Therefore to remove this Refund issue, the GST Council increased the GST Rate on Mobile Phones from 12% to 18%.

A product is mixed of many tiny tiny products
when we mixed all it becomes a final product
and as India is not the hub of many manufacturing products we have it from outside and hence the tax increase to maintain a stustainbility and when it becomes final we decrease the tax so that it maintains a balance ..

Originally posted by : Jinesh
	Hello everyone,, There may be parts on which 18% is levied but what is the fundamental problem if the final product attracts 12% GST instead of 18% GST? Was this increase done just for convenience? Why does every part in the supply chain need to have the same rate of GST https://speedtest.vet/?

I got this thanks you guys for helping me.

Your most Welcome Sir...🙏🙏🙏