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GST on many products like TVs and ACs have come down with the new rate slabs but do smartphones also get cheaper to buy?
GST 2.0 has brought cuts for many products but what about mobile phones?
The Goods and Service Taxes or GST has got a major overhaul from the Indian government this week, which comes into effect from September 22, 2025. The new GST slabs have been simplified to have two different rates, based on the kind of items and goods. For instance, the GST on TVs have been reduced, and same for air conditioners that has more or less become a necessity with changing weather patterns.
But what about phones, is there a change in GST on mobile phones as well? Well, unfortunately, the government has gone with the default tax slab for the mobile sector, which means the current 18 percent GST remains, and that will not result in any reduction in price of smartphones anytime soon.
No Price Cut On Phones, But Why?
The smartphone industry was hoping for some tax break from the GST Council, but most experts were expecting status quo in their situation. The 18 percent GST on one of the most-demanding industries helps the government earn money.
Any call for the GST rate on mobile phones to drop down to 5 percent would have made the phones cheaper but in the larger scheme of things, the industry’s growth wouldn’t have enabled the government to earn its revenue from them.
Having said that, by not including mobile phones in the new tax slab, the government has essentially deemed phones as a non-essential which does seem quite perplexing when ACs and TVs have got their share of cuts. So, because there is no change in the GST rates for the mobile sector, there won’t be any changes in the price of the smartphones.
With the festive season around the corner, the GST rate cuts are primed to entice consumers into making the big purchases and get a good deal on them. TVs, ACs and dishwashers are some of the segments that have been offered the GST rate cuts. If you have been in the market for a big-screen LED TV, you wait for another few weeks and head over to the store and buy the TV for much less than what you would pay today.
S Aadeetya, Special Correspondent at News18 Tech, accidentally got into journalism 10 years ago, and since then, has been part of established media houses covering the latest trends in technology and helping fr…Read More
S Aadeetya, Special Correspondent at News18 Tech, accidentally got into journalism 10 years ago, and since then, has been part of established media houses covering the latest trends in technology and helping fr… Read More
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