Xiaomi to hike prices of smartphones after 6 percent increase in GST on mobiles

Xiaomi smartphones are set to get more expensive, and the company is putting the blame on the Indian government for it. Manu Kumar Jain, Xiaomi MD announced on Twitter that because of the hike in GST in smartphones, the company has no choice but to hike the prices, keeping its 5% profit philosophy in mind.

GST on mobile phones saw a 50 per cent hike from 12 per cent in the last financial year to 18 per cent from April 1, 2020, onward. With Xiaomi’s philosophy of only making a 5 per cent margin on its hardware, the company has had to increase the prices of Mi and Redmi smartphones, as explained by Manu Kumar Jain on Twitter.

Mi fans, #GST on mobile phones has increased by 50% from 12% to 18%. After much deliberation & in keeping with #Xiaomi policy of maintaining

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