With the festive season just around the corner, consumers look forward to potential price drops on various products, including smartphones. Numerous promotional offers and discounts are introduced both online and in physical stores. This drives increased sales as consumers seek to upgrade their devices, leading to a seasonal boom in smartphone purchases.
Those planning to buy new phones are likely wondering if there will be any tax relief on mobile phones. However, the answer seems to be negative. Smartphones will remain priced as they currently are because there have been no adjustments to the GST slab for mobile phones. The smartphone industry had hoped for a GST reduction from 18% to 5%, which would have resulted in more affordable prices. The government, however, has decided against this.
If the GST rate had been reduced, it could have resulted in a significant drop in prices and a surge in sales. The government’s decision to maintain the 18% GST means that consumers will still be required to pay this rate when they buy a mobile phone.
India’s mobile phone sector has experienced substantial growth. As reported by a news agency, the production in this sector reached ₹5.45 lakh crore in fiscal year 2025, a major increase from ₹18,900 crore in fiscal year 2015. The exports in this sector surpassed ₹2 lakh crore. As a result, India has become the second-largest mobile phone manufacturer worldwide.