More reports on: Government policies, Electronics - consumer

Apple may not get special tax exemptions under GST: report

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10 October 2017

Apple, the maker of iPhone and iPad, will not be receiving any tax breaks and concessions under the goods and services tax (GST) for its imported products as there is no provision for special exemptions under the new indirect regime.

Also, the government is pushing its Make in India initiative, which focuses on local manufacturing instead of importing goods and products.

''With the Goods and Services Tax (GST) in place, giving separate exemptions to anyone is not possible,'' a PTI report cited official source as saying.

GST, which was rolled out on 1 July, follows a uniform four-tier tax structure on goods and services across the country. It also does away with exemptions, which Apple had sought for setting up its manufacturing plant in India.

The Cupertino-based company had sought a 15-year tax exemption for its imported products in the country to push it sales as its market has plateaued elsewhere, including in the United States.

Apple had also sought waiver of the 30 per cent local sourcing norms for setting up its own retail stores.

On the other hand, Apple has refused to incorporate the TRAI-sponsored  `Do Not Disturb' app on its App Store saying the DND app violated the privacy of Apple users. The app asks for sharing sensitive information such as call logs, SMS, location, contacts and more along with permissions, which, again is against the company's privacy policy.

After twice refusing to list TRAI's DND app on its app store, the company is now reportedly in talks with TRAI to reach an agreement for resolving the issue.

Smartphone maker Apple is demanding special tax treatment deeming itself as a high-tech entity that needs to be supported by the Indian government as in the case of defence and other vital technologies.





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