Shares of Dixon Technologies and Amber Enterprises India gained in Friday's trade amid reports that the Goods and Services Tax (GST) Council may consider cutting the 18% GST rate on mobile phones, a move that could support handset demand and India's electronics manufacturing ambitions.
Dixon Technologies shares rose as much as 1.42% to Rs 14,920, while Amber Enterprises climbed 1.21% to Rs 7,794 during intraday trade. Both stocks subsequently pared some gains.
According to a Mint report citing people aware of the matter, the GST Council may discuss a proposal to reduce the 18% GST rate on mobile phones at its meeting likely to be held next month. The agenda, however, has not yet been finalised.
The potential tax cut comes against a backdrop of weakening smartphone demand. Smartphone shipments in India declined 10-11% year-on-year in the April-June quarter, marking the steepest fall in a June quarter in six years, according to Counterpoint Research and IDC, as cited in the report.
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