Prices of Nokia phones increased after tax hike in India

Starting April 1st, India increased its GST (Goods and Services Tax) that covers phones from 12% to 18%, which caused a chain reaction for end prices the consumers pay. GST is a tax that consumers pay when buying goods. Usually, the calculation goes something like this:

A retailer gets the phone from manufacturer for 10,000 INR and adds his margin of maybe 10%, which bumps the price to 11,000INR and then comes the GST with another 12% or 18% on the sum, making it a total of 12,320 (12%) or 12,980 (18%). To protect its margins, the manufacturers will deliver the goods at the same price, but the end cost to consumers will be approximately 5% higher.

The same happened to Nokia smartphones and feature phones. According to the official website, Nokia devices received a silent price hike. The hike is around 5%, meaning it reflects the recent GST changes. Keep in mind, that the official Nokia store still offers discounts on almost all devices.

You can check what Nokia Mobile India offers at the official store page here.