Buying a mobile phone in India? Whether you’re a consumer, retailer, or a mobile phone brand, understanding the GST rate on mobile phones in India is crucial. It not only affects the final price you pay but also impacts profit margins, supply chain costs, and input tax credits for businesses. The GST framework aims to simplify taxation, but knowing the current rates, exemptions, and rules for GST on mobile phones 2025, will help you make smarter purchase or pricing decisions.
What is GST on Mobile Phones?
Goods and Services Tax (GST) is a single indirect tax applicable across India.
For mobile phones, the GST structure is simple:
- GST Rate on mobile phones: 18%
- This includes both smartphones and feature phones.
GST Rate History on Mobile Phones
Mobile phones, which were taxed at the rate of 12% when GST was first introduced in July 2017, had their GST rate increased to 18% by the GST Council in March 2020 to correct an input tax credit mismatch.
Here’s a quick timeline:
| Date | GST Rate |
| July 2017 | 12% |
| March 2020 onwards | 18% |
This 6% increase led to a rise in retail prices of smartphones across brands like Xiaomi, Samsung, Realme, and Apple.
How GST Affects Mobile Phone Prices
There is one question normally that how to calculate GST on mobile phones? so here are given an example to calculate GST on mobile phones:
Let’s say the base price of a smartphone is ₹10,000. Here’s how GST affects it:
- GST @18% = ₹1800
- Final Price = ₹11,800
So, the price a customer pays is significantly impacted by the GST rate. Manufacturers and retailers must factor this into their pricing strategies. Any one calculate GST on mobile phones above Rs 50000 or GST on mobile phones above Rs 100000 as above.
GST on Mobile Phone Accessories
Mobile phone accessories are taxed differently. Here’s a quick look:
| Accessory | GST Rate |
| Mobile Charger | 18% |
| Power Bank | 18% |
| Earphones/Headphones | 18% |
| Mobile Cover/Case | 18% |
| USB Cable | 18% |
Input Tax Credit (ITC) for Mobile Dealers
If you’re a mobile phone dealer or retailer, you can claim Input Tax Credit (ITC) on the GST paid during the purchase of mobile phones.
For example, suppose you buy a mobile phone at ₹10,000 and pay 18% GST, bringing your total purchase cost to ₹11,800. When you sell the phone at ₹13,000, you charge 18% GST on the selling price, making the total invoice value ₹15,340.
In this case, the GST paid on purchase is ₹1,800, and the GST collected on sale is ₹2,340. You can claim credit for the ₹1,800 GST already paid, so your net GST payable to the government would be only ₹540 (₹2,340 – ₹1,800).
GST on Imported Mobile Phones
When it comes to imported mobile phones, the total tax burden is higher due to the combined effect of customs duties and GST. Firstly, a Basic Customs Duty (BCD) of 20% is levied on the phone’s import value. Then, GST at 18% is charged on the total value, which includes the product cost plus the customs duty. This means that the GST is not just calculated on the base price but also on the import duty, leading to a higher effective tax. For instance, high-end phones like iPhones or Samsung Galaxy devices become more expensive in India due to this cumulative tax structure.
GST for Mobile Phone Manufacturers
For manufacturers assembling mobile phones in India:
- They pay GST on raw materials/components like batteries, displays, PCBs, etc.
- Can claim ITC on these inputs.
- Final product is taxed at 18% GST.
This helps Make in India initiative by reducing the tax burden on local assembly units.
Request for GST Reduction on Mobiles
- Price-sensitive Indian consumers
- Growing digital usage in rural areas
- Need for affordable devices during online education and remote work
However, as of April 2025, the GST rate on mobile phones remains 18%.
GST Invoice for Mobile Phone Purchase
Every time you buy a cell phone, kindly ask for a GST invoice. It should mention:
- Seller’s GSTIN
- Product details and HSN code of Mobile Phone.
- Price before and after GST (IGST, CGST and SGST)
- GST amount charged ( with GST rates)
This is useful for warranty claims, business purchases, and ITC claims (for businesses).
Conclusion
In short, the GST rate on mobile phones in India is 18%, and this applies to both newly manufactured and imported phones. This tax significantly influences the final retail prices that consumers pay. For imported devices, GST is calculated on the value including customs duty, making them even more expensive. Whether you’re a seller, distributor, or manufacturer, it’s essential to understand how GST affects your pricing and profitability. Staying GST-compliant, maintaining proper documentation, and claiming all eligible Input Tax Credit (ITC) can help reduce your tax liability and improve margins. Always stay updated with GST rules to avoid penalties and errors.
FAQs on GST on mobile phones in India
Q1. What is the GST rate on mobile phones in India?
The current GST rate on all mobile phones in India is 18%. This applies uniformly to both smartphones and basic models, whether sold online or offline. The 18% tax is charged on the total selling price, including any additional charges such as packaging or shipping.
Q2. When did the GST rate on mobiles increase?
The GST rate on mobile phones increased from 12% to 18% starting March 2020. This change was announced during the 39th GST Council meeting. The rate hike was implemented to correct the inverted duty structure and bring more revenue to the government from mobile phone sales.
Q3. Are feature phones also taxed at 18% GST?
Yes, even feature phones, also known as basic phones, attract 18% GST just like smartphones. The GST system does not differentiate based on technology or price; instead, all mobile handsets fall under the same tax bracket irrespective of whether it is a high-end or low-cost phone.
Q4. Is there GST on used or second-hand phones?
Yes, GST is applicable on second-hand phones if the seller is have valid GST registration online a GST-registered business. However, under the second-hand goods scheme, tax is levied only on the margin amount, not the full value. Individual non-business resellers are generally not required to charge GST on used phones.
Q5. What is the HSN code for mobile phones?
The HSN code electronic goods or for mobile phones is 8517. This code is used for classification under GST and is essential for invoicing and return filings. It includes all types of mobile handsets and is recognized internationally under the Harmonized System of Nomenclature (HSN) for standardized product identification.
Q6. Do mobile accessories also have 18% GST?
Yes, most mobile accessories such as chargers, earphones, phone covers, and screen guards are taxed at 18% GST. Each accessory may have its own HSN code, but the applicable rate is typically 18%. Businesses must list correct codes and apply the appropriate rate when invoicing.
Q7. Can mobile dealers claim input tax credit?
Yes, mobile dealers who are registered under GST can claim Input Tax Credit (ITC) on GST paid while purchasing stock. This credit can be used to offset their GST liability when making sales. However, ITC cannot be claimed if the dealer opts for the Composition Scheme.
Q8. Are imported phones more expensive due to GST?
Yes, imported mobile phones become costlier because both customs duty and 18% GST are applicable. Importers pay Basic Customs Duty (BCD) at the port of entry, and GST is applied on the total value, including the customs duty. These taxes increase the overall cost of imported handsets.
Q9. Is GST applicable on EMI purchases?
Yes, GST is included in the price of the phone, regardless of whether you pay upfront or via EMI. EMI is simply a payment method and does not alter the tax amount. However, EMI purchases may include interest or processing fees charged by the financer or bank.
Q10. Can I get GST refund on phone purchases?
Customer’s some time’s a question how can claim GST on mobile purchase? So let’s check, the ordinary consumers cannot claim a GST refund on mobile purchases. Only GST-registered businesses or professionals can claim Input Tax Credit (ITC) if the phone is used for business purposes. The purchase must be in the business name and supported by a GST-compliant invoice with proper HSN code of mobile phones.
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