GST 2.0 on Smartphones: Will Prices Drop This Week?
The Indian government has rolled out a major GST overhaul this week, effective from September 22, 2025. The new system simplifies GST slabs into two rates, depending on the type of product.
While electronics like TVs and air conditioners have seen their GST rates reduced—acknowledging their growing necessity—smartphone buyers have been wondering if the same benefits apply to them.
What This Means for Smartphones
Good news and bad news: the GST rate on mobile phones remains unchanged at 18%. There’s no increase, but there’s also no reduction. So, unfortunately, smartphone prices won’t drop as a result of the new GST changes.
Why Phones Didn’t Get a GST Cut
Experts had largely anticipated this status quo. The smartphone sector is highly profitable, and maintaining the 18% GST ensures a steady revenue stream for the government. While a reduction to 5% GST could have made phones more affordable, it would have limited government revenue from this booming industry.
Interestingly, the government has treated phones as non-essential, despite giving tax relief to ACs and TVs, which can feel inconsistent. Consequently, prices for smartphones and laptops will remain the same under the new GST regime.
But There’s a Silver Lining
Even though GST cuts won’t lower prices, festive season deals are around the corner. Online sales over the next few days are expected to offer attractive discounts on gadgets, giving buyers a chance to save while shopping.
