GST 2.0: Will smartphone prices be affected?
04 Sep 2025

The Indian government has approved major changes to the Goods and Services Tax (GST), set to come into effect on September 22.

The new structure involves changes in tax rates across various sectors, depending on the type of goods and services.

This reform slashes tax rates for many everyday items like electronics, packaged food items, dry fruits, stationery, health-related products, and even insurance.

But what about smartphones? Let's find out!

No change in GST rates for mobile phones
Tax impact

The smartphone industry was hoping for a tax break from the GST Council. However, experts had already predicted that there would be no change in this sector.

The 18% GST on mobile phones remains unchanged, meaning consumers won't see any price drops on smartphones anytime soon.

This is because the government relies heavily on revenue from this high-demand industry.

Government has classified smartphones as non-essential items
Tax classification

By not including mobile phones in the new tax slab, the government has effectively classified them as non-essential items.

This decision is somewhat surprising considering other categories like air conditioners and TVs have seen a reduction in their GST rates.

The move comes ahead of the festive season when consumers are expected to make significant purchases, including electronics such as TVs and refrigerators and washing machines.