GST On Mobile Phones 2025 is now an important topic. The GST Council has made new changes to the system. Many people wonder if phones will become cheaper soon.
The new system has two main slabs and a 40% luxury slab. But what does this mean for smartphone prices? Let’s understand everything in simple detail.
GST On Mobile Phones 2025: New Slabs And Tax Structure
The GST Council has simplified the old four-tier structure. Earlier slabs included 12% and 28% taxes. Now the government announced only two main slabs.
These are 5% for essentials and 18% for most goods. A new 40% slab covers sin and luxury products. Items like large cars and tobacco will fall here.
This new structure will start from September 22, 2025. Finance Minister Nirmala Sitharaman explained the reason behind reforms. She said the change will help common families.
Many essential goods may become cheaper during the festive period. The government also plans three-pillar reforms for ease of doing business. This is a major push for tax simplification.
GST On Mobile Phones 2025: Why Phones Still Have 18% GST
Consumers expected smartphones may get cheaper after reforms. However, mobile phones remain under the 18% GST rate. Industry experts confirmed there will be no reduction.
Mobile phone makers also said rates will not drop. Unless GST moves down to 5%, prices cannot fall. Phones will therefore remain at the same cost bracket.
The India Cellular and Electronics Association (ICEA) made requests. They asked the government to cut GST on phones.
ICEA argued that mobile phones are essential for Indians. They also said lower tax would improve affordability. Phones are used by more than 90 crore Indians today. Before GST, most states taxed phones at just 5%.
The GST on phones increased in 2020. It rose from 12% earlier to 18% now. ICEA believes this change made smartphones costlier for people. They wanted a cut back to 5% again. But the GST Council did not consider this option. So, smartphone buyers will not see any relief yet.
GST On Mobile Phones 2025: Industry And Manufacturing Impact
Though prices stay the same, manufacturers may see support. The government is focusing on local production and exports. India’s smartphone industry is worth around ₹5.45 lakh crore.
Exports are expected to cross ₹2 lakh crore in FY25. Lower GST on some components could help local factories. This may bring benefits for manufacturers producing phones in India.
Industry sources say talks only included two slabs. Since 18% continues, phone prices will not reduce. A two-day GST meeting discussed major reforms in Delhi.
Many consumer goods may become cheaper in the coming months. However, smartphones do not qualify under the essential goods category. So, buyers must wait for brand discounts, not GST relief.
The GST On Mobile Phones 2025 announcement is clear. The Council simplified slabs but kept phones at 18%. Industry groups wanted lower rates but no change happened.
Phones remain outside the essential goods category in GST. Prices will not drop due to this reform. Buyers can expect discounts from brands, not from tax changes this festive season.
