You might have already received a Whatsapp forward that by selling Free JIO smartphones mukesh ambani evade GST on it. Is it true ? or it is hoax forwarded on social media. Today we decided to burst this hoax regarding GST Evasion by Mukesh Ambani’s Jio.
Background of JIO 4G phone :-
Mukesh Ambani’s Telecom venture is selling 4G Smartphone at ₹ 1500 which will be refundable after 3 years. So this phone will be practically free for every one as you got your deposit back after 3 Years. After 3 Year you need not to return your phone back to the company.
Whats-app Rumors regarding Mukesh Ambani Evade GST :
A message has been circulated on whatsapp regarding GST Evasion by Mukesh Ambani’s company reliance JIO. In this message you will see the complete calculation of how JIO is doing ‘ GST Chori ‘ by selling smartphones by taking refundable deposit of ₹ 1500.
GST is Value added tax and it will be applicable on value addition. Also their is 12 % GST on smartphones but JIO need not to pay GST as their are not charging money for that they giving it practically free. Their is no GST on security deposit also, so they need not charge GST on 1500 INR which they are charging as Security deposit and refundable after 3 years. Reliance will procure 4G phones from vendor or manufacture it itself. At this stage they have to pay GST. A user will have to buy monthly plan of 153 to enjoy free call and internet services. At this stage also reliance have to charge 18% GST from its subscribers. It is very clear that it is not the case of GST Evasion but the pure business model and planing.
Why Reliance is selling free JIO 4G Phones :
Few of you will have a question in Mind that why reliance is selling free 4G Smartphone to its subscribers. We tried to all the answers to your questions with example in following video. In this video, we have explained the complete Business model of Reliance JIO and why they are selling their 4G Phone for free.
Applicable GST on Reliance JIO :
|GST on security deposit of 1500||Nill|
|GST on monthly recharge of 153||18%|
|GST on value added service of 309||18%|
|GST on phones Purched by JIO||12%|
Summary of the Story :
Summary of this story is not to believe on Social media hoaxes like GST Evasion by reliance JIO. These all are cooked up stories for the sake of few likes and shares. Apply your brain before believing & forwarding this kind of fake messages on social media
Do share with your friends who are still believing the rumor that Mukesh Ambani Evade GST by selling Smartphones for free. hope you like our post and keep visiting gstportal.in for more such stories and updates on GST.
Thank You !!