Mobile phone handset companies seek rationalisation of GST on batteries Indian handset makers have asked the government to rationalise taxes levied on batteries and issue a clarification that the goods and services tax (GST) on lithium-ion batteries used in smartphones and feature phones should be levied at 12%, on par with the rate on parts used to make mobile phones. “… it may be clarified that 12% GST on parts for mobile manufacture covers batteries, which are to be inserted into the mobile. There is no revenue implication on this measure; but it will greatly ease the pain which our manufacturers are being subject to,” the Indian Cellular Association said in a letter to revenue secretary Hasmukh Adhia dated June 6. A copy was seen by ET. The association had said earlier that there is a “tendency” on the part of the revenue administration to deny the 12% rate to batteries for manufacture of mobiles and 18% for sale to the replacement market and put them in the 28% categor