With the festive season approaching, consumers anticipate tax reductions on various products to ease their financial burden. Attractive offers are commonplace both online and offline to entice customers during this period. These compelling deals encourage upgrades, not only for Smart TVs and ACs but also for smartphones, leading to a surge in smartphone sales every festive season.
Many potential buyers are now wondering if the Goods and Services Tax (GST) on mobile phones has been reduced. However, according to sources, the answer is ‘no.’ Smartphones remain as expensive as before because there has been no change in the GST slab for mobile phones. The smartphone industry had hoped for a reduction in GST from 18% to 5%, but the government has disappointed these expectations.
If the GST had been lowered to 5%, it would have significantly reduced the prices of mobile phones, potentially leading to a substantial increase in sales during this year’s festive season. Yet, with the government’s decision to maintain the 18% GST, consumers will still have to pay this rate when purchasing mobile phones.
According to a report by the news agency PTI, India’s mobile phone sector production surged to ₹5.45 lakh crore in fiscal year 2025, up from ₹18,900 crore in fiscal year 2015. Exports have exceeded ₹2 lakh crore, making India the second-largest mobile phone manufacturer globally.