Xiaomi Hikes Phone Prices Due To increase in GST rate

Xiaomi executives have been requesting GST rate-hike rollback ever since last GST council meeting concluded. After an unanswered rollback request, Xiaomi has decided to pass on the price hike to its customers. The revised prices of Xiaomi smartphones will be applicable from midnight April 1st 2020.

In the recent GST council meeting, a decision was made to increase GST on smartphones by 50 percent. Starting April 1, 2020, GST on mobile phones will be charged 18 percent instead of 12 percent which was applicable in FY2019-20. Xiaomi is attributing this GST hike as the main reason for driving its smartphone retail prices upwards.

Xiaomi says the new prices of the phones will reflect on Mi official website soon. As of now, the prices of Redmi and Mi phones are yet to be updated on Xiaomi’s website.

Xiaomi Global VP Manu Kumar Jain in his tweet revealed that the company is still persisting with maintaining less than 5-percent profit margin policy. With a double whammy of GST hike and the depreciating value of Indian Rupee against the US dollar, the company had no other choice but to increase the prices of its smartphones.

Xiaomi has updated its E-commerce website with the new prices of both Redmi and Mi series phones. Here’s the complete list of new price list of Redmi and Mi phones.

Xiaomi Phone Updated Price List After GST Hike

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Xiaomi spin-off brand has also hiked the price of its recently launched Poco X2 phone. Post GST hike, POCO X2 price in India has been increased by Rs 1,000. Here’s the updated price list of Poco phones.

Poco Phones Price list (Updated)

It remains to see how Mi and Poco fans react to these revised prices. Apart from Xiaomi, brands like OPPO, and Vivo have also hiked prices of their smartphones.