GST on Mobile Phones After 22 September — Will Your Next Phone Get Cheaper?

Mobile Phones GST Rate Unchanged at 18% After September 22, 2025 📱

Mobile phones will continue to attract 18% GST after 22 September 2025, so there is no rate cut for smartphones under the rationalised GST 2.0 structure taking effect on that date. The GST Council’s overhaul simplifies slabs and reduces rates on several appliances, but mobile phone GST stays unchanged at 18%, meaning prices should remain broadly stable except for brand or currency-led adjustments.

What is changing 🔄

India’s GST Council approved a two-tier structure effective 22 September 2025, consolidating most goods into 5% and 18% slabs and moving erstwhile 28% items like ACs and refrigerators down to 18%, while luxury/sin goods shift to 40% with cess where applicable. Multiple summaries and industry explainers confirm mobile phones remain at 18% GST in the new regime, aligning with the Council’s clarifications ahead of the switchover date.

Mobile phones after 22 Sep 📅

Authoritative guides updated in September 2025 state the GST on mobile phones is 18% under HSN 8517, with no change announced for the new system starting 22 September 2025. Financial services advisories also reiterate that the “mobile phone GST 2025” rate remains 18%, so MRP changes around the transition will reflect market factors, not a GST rate cut on handsets.

Price impact and who benefits 💰

Because the GST on mobile phones after 22 September stays at 18%, consumers should not expect a tax-driven price drop on smartphones, though select electronics like air conditioners may see relief as their GST falls to 18% from 28%. Retail promotions may market “GST changes September 22 2025,” but for phones specifically, base tax remains the same, so compare pre- and post-change invoices to avoid overpaying during the transition.

Input tax credit and invoicing 🧾

For businesses, ITC on mobile phones remains available when devices are used in the course of business and supported by compliant invoices carrying GSTIN, HSN, and tax details, which helps offset output tax liabilities. Within a state, invoices split the 18% into CGST 9% and SGST 9%; across states, the same appears as IGST 18%, leaving the total tax burden unchanged for end buyers.

Case study: Buyer during the switch 👩‍💼

Consider Asha, who planned a ₹20,000 smartphone purchase around 22 September 2025 and worried about new slabs changing the bill; her pre-change invoice applied 18% GST, and the post-change invoice also applied 18%, confirming no handset tax change. Her final payable remained ₹23,600 both before and after the date (₹20,000 + ₹3,600 GST), demonstrating that “GST changes September 22 2025” did not alter the GST rate for mobile phones on mainstream models.

GST comparison for key electronics before and after 22 Sep 2025 (percent) 📊

Real-life example: Retailer adaptation 🏪

Mumbai retailer “SmartHub” ran a “GST 2.0 clarity” campaign to explain that mobile phone GST stays 18% while appliances like ACs become cheaper due to rate alignment to 18% from 28% starting 22 September. The store updated shelf tags to reflect unchanged smartphone GST and revised tags on appliances, which reduced returns and customer confusion during the first post-change week.

Urgent buyer tips to avoid overpaying ⚠️

• Check the tax line on invoices for 18% GST under HSN 8517 for mobile phones, ensuring CGST+SGST totals 18% intrastate or IGST 18% interstate; discrepancies should be challenged immediately at checkout.
• Ignore claims of “new lower GST on mobiles” after 22 September and negotiate only on base price or exchange bonuses, as taxes on phones remain unchanged under the new slab structure.

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