GST on Mobile Phones in India (2025): Updated Rates, Rules & Impact
Mobile phones have become an essential part of our daily lives, and so have the taxes associated with them. The Goods and Services Tax (GST) on mobile phones in India remains one of the most discussed topics among buyers and sellers alike. With frequent updates from the GST Council, it is important to stay updated about the applicable tax rates, compliance rules, and their impact on smartphone prices.
What is the GST Rate on Mobile Phones in 2025?
As per the latest GST Council updates, the GST on mobile phones in India is 18%. This rate has been effective since April 2020 and continues in 2025. It applies to all categories — smartphones, feature phones, tablets, and iPads.
Example: If a smartphone costs ₹20,000, GST at 18% will be ₹3,600. The final price becomes ₹23,600.
GST on Mobile Accessories (with HSN Codes)
Along with mobile devices, various accessories are taxed under different HSN codes. Below is a quick reference table:
| Item | HSN Code | GST Rate |
|---|---|---|
| Mobile Phones | 8517 | 18% |
| Chargers & Adapters | 8504 | 28% |
| Batteries | 8506 | 28% |
| Power Banks | 8504 | 28% |
| Phone Cases & Covers | 4202 | 28% |
| Memory Cards | 8523 | 18% |
| Earphones & Speakers | 8518 | 18% |
| Screen Protectors | 3919 / 3923 | 18% |
GST on Mobile Repair Services
Mobile repair services, including labour charges, attract 18% GST. Spare parts such as screens, batteries, or connectors also generally fall under the 18% bracket. Businesses in this sector can claim Input Tax Credit (ITC) on spare parts used for repairs.
When Are SGST, CGST, and IGST Applicable?
- Intra-state purchase: GST is split into SGST (9%) and CGST (9%).
- Inter-state purchase: IGST (18%) is applied in full.
Impact of GST on Smartphone Prices
While GST brought uniformity across states, it slightly increased prices of budget smartphones but had minimal effect on mid-range and premium devices. The 2024 Union Budget also reduced customs duty on mobile phone imports from 20% to 15%, which may balance overall pricing.
Can Businesses Claim ITC on Mobile Phones?
Yes, businesses can claim ITC on phones purchased for business purposes, provided they have valid GST invoices. However, ITC is not available if the device is used for personal or employee benefit purposes.
Frequently Asked Questions (FAQ)
1. What is the GST on iPhones?
Just like other smartphones, iPhones are taxed at 18% GST in India.
2. Is GST applicable on second-hand phones?
Yes, GST applies to second-hand mobile phones as well, with the same 18% rate.
3. How to save GST on mobile phones?
The only legitimate way to save GST is by buying from authorised sellers who provide GST invoices. Businesses can later claim ITC if eligible.