GST, New Tax Reform, Results In Reducing Cost For The Apple iPhone, iPad

Apple has reduced the price of its devices in India this week due to the new tax reform in the country. Apple has discounted its iPhones by up to 7.5 percent alongside reduced-cost iPads and Mac systems. 

India has introduced a new sales tax system name Goods and Service Tax (GST). The new tax system means that customers will now have to pay a single tax, as opposed to various government taxes, on the goods they purchase. There were five different tax rates, ranging from 0 to 28 percent, that is applied depending on product type.

GST has affected the price of the smartphone also. The prices of Apple iPhones declined across the India by at least 4 percent on July 1, with the cheapest iPhone SE cut from Rs 27,200 ($420) to Rs 26,000 ($402), as reported by the Chandigarh Metro. The Apple iPhone 7 starts from Rs 56,200 ($867), down from Rs 60,000 ($926), and the highest cost iPhone, a 256GB iPhone 7 Plus, has been reduced by Rs 6,000 to Rs 85,400 ($1,319).

Not only iPhones but the iPads across the nation are also getting the taste of GST. The 32GB 9.7-inch iPad is now costs Rs 28,000 ($432) instead of Rs 28,900 ($446), with the 128GB model falling from Rs 36,900 ($570) to Rs 35,700 ($551). On the other hand, Apple iPad Pro range, with the 64GB 10.5-inch model starts from Rs 50,800 ($784) and moving up to Rs 73,900 ($1,140) for the 512GB variant, as reported by Apple Insider.

The 2.3GHz non-Retina 21.5-inch iMac has only received a small cut in price, moving from the previous Rs 90,900 ($1,403) price to Rs 90,200 ($1,392). However, the Apple Watch has also seen changes in price, with Series 1 variant starting at Rs. 22,900 ($354) down from Rs. 23,900, and Series 2 variant starting at Rs. 31,600 ($488) down from Rs. 32,900.

The price changes for Apple India comes at the same time as the country implements a new sales tax system. The Goods and Services Tax (GST) replaces multiple taxes levied by various central and state governments with one single tax, with five different tax rates ranging between 0 percent and 28 percent, applicable depending on the product or service being taxed.