GST on Mobile Phones 2025: Applicability & Rates

The GST, introduced in 2017, is a unified tax system that replaced multiple indirect taxes like VAT and excise duty, streamlining the taxation process across India. GST on mobile phones is levied at a rate of 18% in India, significantly impacting the final price of these devices. The 18% GST rate on mobile phones, which came into effect on April 1, 2020, during the 39th GST Council meeting, continues to influence both pricing and consumer purchasing decisions in 2025. In this article, we’ll explore GST rates on Mobile Phones and their Accessories in detail and how the taxable value of supply is determined.

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What is the GST Rate on Mobile Phones?

“In India, the GST rate on Mobile Phones is 18%”. It means that the cost of the mobile phone increases by an additional 18% due to the tax. The GST is calculated by applying the 18% rate to the price of the mobile phone.

For example, if the price of a mobile phone is Rs. 15,000, the GST at 18% will be Rs. 2,700 (18% of 15,000). This GST amount is then added to the original price of the phone, making the final cost Rs. 17,700 (15,000 + 2,700).

In case of a composite supply under GST, two or more goods or services are bundled together, with one item considered as the principal supply. For mobile phones, this often includes accessories like chargers and USB cables. In such cases, the GST rate for the mobile phone applies to the entire bundle, rather than taxing them separately.

The GST on mobile phones and accessories falls under HSN Chapter 85. To help you understand the applicable GST rates, we’ve provided the details of the rates and HSN codes of the products along with the description in the table below:

Learn more: GST rates for different goods and services in India

What is GST on Mobile Phone Repair Services and Spare Parts?

Mobile phone repair services in India are subject to an 18% GST rate, which applies to the labour charges associated with repairing the device. This tax is levied on the service provided by repair shops, ensuring that the cost of labour is subject to GST.

In addition, spare parts used in the repair process, such as display screens, headphone jacks, charging ports, batteries, and internal components, also attract an 18% GST rate. Repair shops can claim Input Tax Credit (ITC) on the purchase of these parts, which helps reduce their overall tax liability by offsetting the tax paid on the inputs. 

What is the GST on Imported Mobile Phones?

In Budget 2024, the Basic Customs Duty (BCD) on mobile phones, chargers, and PCBA was reduced from 20% to 15%. Previously, Budget 2023 had eliminated the customs duty on camera lenses and parts used in mobile phone manufacturing, including the camera module, and extended duty exemptions for lithium-ion cells until March 2024.

Before Budget 2020, imported mobile phones were exempt from the 10% social welfare surcharge. However, this surcharge was reimposed in 2020, making imports more expensive compared to locally made devices.

IGST is levied on the value of imported mobile phones, which includes the assessable value, basic customs duty, and any other applicable duties. This structure has contributed to higher costs for importing mobile phones into India.

Types of GST Applicable on Mobile Phones

The type of GST applicable to mobile phones depends on the nature of the supply and the location of the dealer. There are two primary scenarios under which different GST rates are applied:

SGST, CGST, or IGST - Applied

• Intra-State Transactions (Same State or Union Territory): If you buy a mobile phone from a dealer located within the same state or Union Territory, the dealer is required to pay both Central GST (CGST) at 9% and State GST (SGST) at 9%. This means a total of 18% GST is levied on the mobile phone price.
• Inter-State Transactions (Between Different States or Union Territories): If the mobile phone is purchased from a dealer located in a different state or Union Territory, Integrated GST (IGST) at 18% will be applied. This tax is levied on the entire transaction value, including the price of the mobile phone.

Also read: GST Intrastate Vs Interstate Supply Meaning

How to Determine the Taxable Value of Supply on Mobile Phones under GST?

The taxable value of supply refers to the amount the seller charges the buyer for goods or services. Under GST, this value is generally the transaction price agreed upon by both parties. For transactions between related parties, GST is applied to the agreed-upon transaction value. For unrelated parties, GST is also charged based on the transaction price.

• Exchange Offers: Mobile phone dealers often provide exchange offers where customers can trade in their old phones and pay the difference for a new one. Under GST, this type of exchange is considered a barter, and the entire price of the new mobile phone is subject to tax. For example, if a mobile phone's market price is Rs. 25,000, but the customer exchanges an old phone worth Rs. 5,000, GST will be calculated on Rs. 25,000, not the reduced price of Rs. 20,000.
• Discounts Exclusion: Trade and quantity discounts are commonly offered in the mobile phone industry. If a discount is provided and properly documented on the invoice, it can be excluded from the taxable value. However, certain conditions must be met, including the proper reflection of the discount on the invoice and the reversal of Input Tax Credit (ITC) on the discount through a credit note. This ensures that the taxable value is adjusted accordingly, ensuring compliance with GST regulations.

Can the ITC be claimed for GST on Mobile Phones?

Yes, Input Tax Credit (ITC) on mobile phones can be claimed if the phones are purchased for business purposes. To claim ITC, the invoice must contain essential details such as the company’s name, address, GSTIN, HSN code, and the GST amount charged. Additionally, the mobile phone must be received by the recipient, and the supplier must file their GST returns and remit the tax to the government. Only once these conditions are met can ITC be claimed to offset the GST paid on the purchase.

Conclusion

In conclusion, GST on mobile phones plays a significant role in determining the final price of these devices, whether purchased domestically or imported. With an 18% GST on mobile phones and accessories, as well as on repair services and spare parts, businesses and consumers are impacted by the tax structure. It is important for businesses to understand the applicable GST rates, how to determine taxable value, and the conditions under which Input Tax Credit (ITC) can be claimed to ensure compliance. Proper documentation and adherence to GST regulations are essential to managing tax liabilities effectively.

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FAQs

1. What is the GST rate on mobile phones in India?

The GST rate on mobile phones is 18%, which applies to the price of the phone and its accessories.

2. Is GST on mobile phones 28%?

No, the GST on mobile phones is currently 18%. The rate was increased from 12% to 18% after the 39th GST Council meeting in April 2020.

3. What is the GST rate on mobile phone accessories?

Mobile phone accessories such as chargers, power banks, and memory cards are taxed at 18% under GST.

4. What is HSN code?

HSN (Harmonized System of Nomenclature) code is an internationally recognized system for classifying goods. In India, HSN codes are used under GST to systematically identify products for taxation. For mobile phones, the HSN code is 8517.

5. What about the Pre-GST and Post-GST regime regarding GST on mobile phones?

Before GST, mobile phones were taxed with excise duty and VAT, with VAT rates varying by state, making pricing inconsistent across India. Post-GST, a uniform 18% GST rate applies nationwide, ensuring consistent pricing and eliminating the multiple taxation system.

6. How is GST calculated on imported mobile phones?

Imported mobile phones are subject to IGST, which is calculated on the value of the phone, including customs duties and any other applicable taxes.

7. Can GST be claimed on mobile phone repair services?

Yes, GST of 18% is levied on mobile phone repair services, and repair shops can claim Input Tax Credit (ITC) on the purchase of spare parts.

8. Can Input Tax Credit (ITC) be claimed for mobile phone purchases?

Yes, ITC can be claimed on mobile phones if they are purchased for business purposes, provided the necessary invoice details are available and GST returns are filed.

9. How much GST refund will I get on mobile?

GST refunds on mobile phones are generally not available to end consumers. However, businesses registered under GST can claim input tax credit on mobile phones purchased for business use, subject to GST rules and eligibility.

10. Are discounts considered while calculating GST on mobile phones?

Yes, trade or quantity discounts can be excluded from the taxable value if properly reflected on the invoice and supported by a credit note for ITC reversal.

11. Which items are in the 28% GST slab?

Items in the 28% GST slab typically include luxury goods, certain electronics, and accessories such as chargers, batteries, power banks, and some phone covers. Mobile phones themselves are taxed at 18%, not 28%.