Are you paying more for your smartphone than you should?
The recent GST reforms have created a wave of confusion among Indian consumers. Here’s what’s really happening to mobile price after GST reform and why it matters to your wallet.
GST on Mobile Phones in 2025
The Current Reality of Mobile Phone GST
Mobile phones continue to be taxed at 18% GST rate in 2025. This means every smartphone you buy includes this tax burden.
Breakdown of GST:
- 9% Central GST (CGST)
- 9% State GST (SGST) for same-state purchases
👉 This 18% rate has remained unchanged despite recent GST reforms.
What GST Reform Really Means for Mobile Prices
The GST Council implemented a simplified two-tier system (5% and 18%) on September 22.
But the GST rate on mobile phones remains unchanged at 18%.
Many consumers expected mobile price after GST reform to drop. The reality? Mobile phones stayed in the 18% bracket — leaving millions of Indian consumers frustrated. 😞
Customs Duty Changes – The Hidden Impact
Before Budget 2024
- Customs duty: 20%
- GST: 18%
After Budget 2024
- Customs duty: 15%
- GST: 18%
This 5% reduction should have made phones cheaper, but experts say the real impact is minimal.
Why Mobile Prices Haven’t Dropped
- More than 95% of phones are manufactured locally
- Customs duty cut affects mainly imported phones
- The shocking truth: Most popular brands like Samsung, Xiaomi, and Realme already make devices in India
👉 So, the mobile price after GST reform impact is limited.
Real-World Price Impact
Example: ₹20,000 Smartphone
Under Old System:
- Base price: ₹16,949
- Customs duty (20%): ₹3,390
- GST (18%): ₹3,051
- Total: ₹23,390
Under New System:
- Base price: ₹17,391
- Customs duty (15%): ₹2,609
- GST (18%): ₹3,130
- Total: ₹23,130
Savings: Only ₹260 on a ₹20,000 phone! 😱
GST on Mobile Accessories After Reform
Accessories also continue at 18% GST:
- Phone cases
- Power banks
- Wireless earphones
- Screen guards
- Mobile chargers
👉 The mobile price after GST reform burden extends to accessories too.
Industry Reactions
Since 2021, the average selling price of smartphones in India has risen 15-20% year-on-year, hitting demand.
Industry leaders had hoped for relief, but the mobile price after GST reform hasn’t delivered.
Effect on Different Phone Categories
Budget Phones (Under ₹15,000)
- Minimal price impact
- Local manufacturing advantage
- GST burden remains significant
Premium Phones (Above ₹50,000)
- Slightly better customs duty relief
- Import dependency affects pricing
- 18% GST still applies
Future Outlook – Will Prices Drop?
Currently, GST on mobile phones is 18%. However, concessions may come in the near future.
The government’s GST 2.0 plan aims to simplify slabs into 5% & 18% by removing 12% and 28%.
👉 Consumers may see relief if reforms continue.
Smart Buying Tips After GST Reform
- ✅ Choose Made-in-India brands for maximum savings
- ✅ Time your purchases around festive sales
- ✅ Consider older flagship models for better value
The Bottom Line
The mobile price after GST reform truth is disappointing.
- Customs duty reductions help little
- 18% GST rate continues to burden buyers
- Prices remain higher compared to previous regimes
Your Action Plan
- Research Made-in-India options
- Compare online platform prices
- Wait for seasonal sales
👉 Stay informed, because the mobile price after GST reform story is still evolving. 💰
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