Quick Summary
Several Chinese handset makers, including Xiaomi, Realme, Oppo, Vivo, and Oneplus, have allegedly evaded significant amounts of Goods and Services Tax (GST) and customs duties over the past five years. According to the governments statement, they have collectively evaded ₹1,108.98 crore in GST and ₹7,966.09 crore in custom duties between the financial years 2017-18 and 2023-24 (up to July 1). In response to these alleged tax evasion cases, the government has taken action by issuing show cause
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FAQ :
Xiaomi, Realme, Oppo, Vivo, Oneplus, and Lenovo are among the Chinese mobile companies being investigated for alleged tax evasion.
The companies are alleged to have evaded a total of approximately £1,108.98 crore in GST and £7,966.09 crore in customs duties between FY 2017-18 and July 2023-24.
The government has issued show cause notices to the companies and initiated investigations to hold them accountable for their tax obligations.
Xiaomi reportedly paid £89 lakh in customs duty evasion for FY 2018-19 with interest and penalty. For FY 2019-20, it allegedly evaded £653.02 crore in customs duty and has paid only £46 lakh.
Yes, Oppo Mobile India and Vivo India are alleged to have evaded substantial customs duties (£4,389 crore and £2,217 crore respectively in FY 2020-21), and Lenovo India is accused of evading £42.36 crore in GST.
Yes, these Chinese handset makers have manufacturing units in India, a cumulative turnover of around £1.5 lakh crore in FY 2021-22, and employ over 75,000 workers in manufacturing, plus around 80,000 in sales and operations.
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