Mobile recharges, new handsets may be costlier from 1 July

Most mobile phones may get costlier by 4 to 5% as the government has plans to introduce the Goods and Services Tax - GST of 12% on mobile phone handsets from 1 July, says a report.

A mobile user may have to spend Rs 30 more if their monthly use is up to Rs 1,000 as the tax rate on telecom services may be increased from 15% to 18%.

The recharge packs will also become costlier. For example, a Rs 100 recharge pack for prepaid customers will provide a talk-time of Rs 82 only instead of earlier Rs 85 due to the GST.

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