{"id":12199,"date":"2025-09-25T12:13:23","date_gmt":"2025-09-25T06:43:23","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=12199"},"modified":"2026-01-05T13:47:10","modified_gmt":"2026-01-05T08:17:10","slug":"gst-on-mobile-phones","status":"publish","type":"post","link":"https:\/\/razorpay.com\/learn\/gst-on-mobile-phones\/","title":{"rendered":"GST on Mobile Phones 2026: Updated Rates, Rules, and Impact"},"content":{"rendered":"<div class=\"flex max-w-full flex-col flex-grow\">\n<div class=\"min-h-[20px] text-message flex w-full flex-col items-end gap-2 break-words [.text-message+&amp;]:mt-5 overflow-x-auto whitespace-normal\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"7eabf3a5-37f2-4add-9d8b-6299f2955b5a\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[3px]\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d1d42e39118\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d1d42e39118\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/learn\/gst-on-mobile-phones\/#What-is-the-GST-on-Mobile-Phones-in-India\" >What is the GST on Mobile Phones in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/learn\/gst-on-mobile-phones\/#GST-Rate-on-Mobile-Accessories-with-HSN-Code\" >GST Rate on Mobile Accessories with HSN Code<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/learn\/gst-on-mobile-phones\/#GST-on-Mobile-Phone-Repair-Services-and-Spare-Parts\" >GST on Mobile Phone Repair Services and Spare Parts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/learn\/gst-on-mobile-phones\/#GST-Calculation-on-Mobile-Phones\" >GST Calculation on Mobile Phones<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/learn\/gst-on-mobile-phones\/#When-are-SGST-CGST-and-IGST-Applicable-on-Mobile\" >When are SGST, CGST, and IGST Applicable on Mobile?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/learn\/gst-on-mobile-phones\/#How-is-the-Value-of-Supply-Calculated-for-GST-on-Mobile-Phones\" >How is the Value of Supply Calculated for GST on Mobile Phones?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/learn\/gst-on-mobile-phones\/#Impact-of-GST-on-Mobile-Phone-Prices\" >Impact of GST on Mobile Phone Prices<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/learn\/gst-on-mobile-phones\/#Can-ITC-Be-Claimed-on-Mobile-Phones\" >Can ITC Be Claimed on Mobile Phones?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/razorpay.com\/learn\/gst-on-mobile-phones\/#How-Smartphones-Dealers-Benefit-from-GST\" >How Smartphones Dealers Benefit from GST?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/razorpay.com\/learn\/gst-on-mobile-phones\/#GST-Compliance-Challenges-for-Mobile-Phone-Retailers-in-India\" >GST Compliance Challenges for Mobile Phone Retailers in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/razorpay.com\/learn\/gst-on-mobile-phones\/#Frequently-Asked-Questions\" >Frequently Asked Questions<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-is-the-GST-on-Mobile-Phones-in-India\"><\/span><b>What is the GST on Mobile Phones in India?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Updated GST Rate on Mobile Phones Effective 22 September 2025<\/strong><\/p>\n<p><em>The price of mobile phones is not decreasing<\/em>. The GST rate on mobile phones continues to be 18%, despite the introduction of the new tax system. No changes have been made to the GST rate for mobile phones.<\/p>\n<p><span style=\"font-weight: 400;\">The GST on mobile phones in India is 18%, applicable to all types of devices, including smartphones, feature phones, Android tablets, and iPads. This rate has been in effect since April 1, 2020, and is consistent across all states, replacing the earlier VAT system with a unified tax structure.<\/span><\/p>\n<p><b>Example:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">If a mobile phone costs \u20b915,000, GST at 18% would be \u20b92,700.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Total price including GST = \u20b915,000 + \u20b92,700 = \u20b917,700<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"GST-Rate-on-Mobile-Accessories-with-HSN-Code\"><\/span><b>GST Rate on Mobile Accessories with HSN Code<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The <strong>GST rate on mobile accessories is 18%<\/strong>, categorized under distinct HSN codes. Below is a table detailing the GST rates along with corresponding HSN codes for mobile devices and their accessories.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<h3><b>Item<\/b><\/h3>\n<\/td>\n<td>\n<h3><b>HSN CODE<\/b><\/h3>\n<\/td>\n<td>\n<h3><b>GST RATE<\/b><\/h3>\n<\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Mobile Phones<\/span><\/td>\n<td><span style=\"font-weight: 400;\">8517<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Charger<\/span><\/td>\n<td><span style=\"font-weight: 400;\">8504<\/span><\/td>\n<td><span style=\"font-weight: 400;\">28%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Battery<\/span><\/td>\n<td><span style=\"font-weight: 400;\">8506<\/span><\/td>\n<td><span style=\"font-weight: 400;\">28%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Power Bank<\/span><\/td>\n<td><span style=\"font-weight: 400;\">8504<\/span><\/td>\n<td><span style=\"font-weight: 400;\">28%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Leather Phone Case &amp; Back Cover<\/span><\/td>\n<td><span style=\"font-weight: 400;\">4202<\/span><\/td>\n<td><span style=\"font-weight: 400;\">28%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Memory Card<\/span><\/td>\n<td><span style=\"font-weight: 400;\">8523<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on USB Cable<\/span><\/td>\n<td><span style=\"font-weight: 400;\">8504<\/span><\/td>\n<td><span style=\"font-weight: 400;\">28%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Earphone, Headphones and Speakers<\/span><\/td>\n<td><span style=\"font-weight: 400;\">8518<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Plastic Screen Protector<\/span><\/td>\n<td><span style=\"font-weight: 400;\">3919<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Tempered Glass Screen Protector<\/span><\/td>\n<td><span style=\"font-weight: 400;\">3923<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><em><strong>Related Read: <a href=\"https:\/\/razorpay.com\/learn\/what-is-the-gst-hsn-code\/\">GST HSN Code List<\/a><\/strong><\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"GST-on-Mobile-Phone-Repair-Services-and-Spare-Parts\"><\/span><b>GST on Mobile Phone Repair Services and Spare Parts<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Mobile phone repair services are subject to an <\/span><b>18% GST rate<\/b><span style=\"font-weight: 400;\">, which covers labor charges for repairing the device.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For spare parts used in repairs, such as display screens, headphone jacks, batteries, and internal components, the applicable <\/span><b>GST rate is generally 18%<\/b><span style=\"font-weight: 400;\">. Repair shops can also claim Input Tax Credit (ITC) on the purchase of these parts, helping offset their overall tax liability.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"GST-Calculation-on-Mobile-Phones\"><\/span><strong> GST Calculation on Mobile Phones<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>GST on mobile is calculated by multiplying the tax rate by the price of the mobile phone.<\/p>\n<p><strong>Formula to Calculate Mobile GST Rate: <\/strong><\/p>\n<p>GST amount = (Price of product \u00d7 GST rate) \/ 100<\/p>\n<p><strong>For instance<\/strong>, if a mobile phone costs \u20b925,000, the GST at 18% would be \u20b94,500 (18% of \u20b925,000).<\/p>\n<p>Using this formula, you can calculate the GST on any mobile phone by entering its price and the applicable tax rate.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"When-are-SGST-CGST-and-IGST-Applicable-on-Mobile\"><\/span><strong>When are SGST, CGST, and IGST Applicable on Mobile?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">When purchasing a mobile phone, the application of GST\u2014comprising SGST, CGST, or IGST\u2014 are based on the location of the buyer and seller:<\/span><\/p>\n<h3><strong>Intra-state Purchase<\/strong><\/h3>\n<p>If a customer buys a mobile within the same state, the 18% GST rate is divided equally into State GST (SGST) and Central GST (CGST). For example, with a mobile phone priced at \u20b920,000:<\/p>\n<ul>\n<li><strong>SGST (9%)<\/strong>: \u20b91,800<\/li>\n<li><strong>CGST (9%)<\/strong>: \u20b91,800<\/li>\n<li><strong>Total Price<\/strong>: \u20b920,000 + \u20b91,800 (SGST) + \u20b91,800 (CGST) = \u20b923,600<\/li>\n<\/ul>\n<h3><strong>Inter-state Purchase<\/strong><\/h3>\n<p>If a customer buys a mobile phone from a dealer in another state, Integrated GST (IGST) is applicable. The entire 18% GST is charged as IGST. For example, for a \u20b920,000 mobile phone purchased from Maharashtra by a customer in Karnataka:<\/p>\n<ul>\n<li><strong>IGST (18%)<\/strong>: \u20b93,600<\/li>\n<li><strong>Total Price<\/strong>: \u20b920,000 + \u20b93,600 (IGST) = \u20b923,600<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">To stay updated on any changes to the GST rate on mobile phones, you can follow announcements from the <\/span><a href=\"https:\/\/gstcouncil.gov.in\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">GST Council<\/span><\/a><span style=\"font-weight: 400;\">, the Ministry of Finance, and other reliable news sources.\u00a0<\/span><\/p>\n<p><em><strong>Related Read: <a href=\"https:\/\/razorpay.com\/learn\/what-is-cgst-sgst-igst\/\">What is CGST, SGST, IGST, and UTGST?<\/a><\/strong><\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How-is-the-Value-of-Supply-Calculated-for-GST-on-Mobile-Phones\"><\/span><b>How is the Value of Supply Calculated for GST on Mobile Phones?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>Value of Supply:<\/b><span style=\"font-weight: 400;\"> Under <a href=\"https:\/\/razorpay.com\/learn\/gst-rates-goods-and-service-tax-rates-slabs\/\">GST<\/a>, the value of supply is the total amount collected by the seller from the buyer for the goods or services. When dealing with related parties, GST is charged based on the transaction value, which refers to the price at which unrelated parties would typically transact in the ordinary course of business.<\/span><\/p>\n<p><b>Exchange Offers:<\/b><span style=\"font-weight: 400;\"> When smartphones are sold with exchange offers, where customers trade in old devices for new ones, GST is charged on the full value of the new phone, not just the reduced amount. For example, if a new phone is sold for \u20b925,000 but the customer pays \u20b920,000 due to an exchange, GST will still be calculated on \u20b925,000.<\/span><\/p>\n<p><b>Exclusion of Discounts:<\/b><span style=\"font-weight: 400;\"> Trade discounts or quantity discounts reflected on the invoice are excluded from the taxable value of supply, provided the following conditions are met:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The discount is mentioned on the invoice.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Input Tax Credit (ITC) is reversed on the discount received through a <a href=\"https:\/\/razorpay.com\/blog\/what-is-credit-note\/\">credit note<\/a>.<\/span><\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Impact-of-GST-on-Mobile-Phone-Prices\"><\/span><strong>Impact of GST on Mobile Phone Prices<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The shift from the old tax regime (VAT) to GST has significantly impacted mobile phone prices. Here are some key changes:<\/span><\/p>\n<h3><b>Latest Updates on GST and Import Duties for Mobile Phones<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">In the <a href=\"https:\/\/razorpay.com\/learn\/budget-2024-highlights\/\">Union Budget 2024<\/a> held on <b>23rd July 2024<\/b>, the Finance Minister announced a reduction in the customs duty on the import of mobile phones and related components by 5%. This move aims to boost the domestic manufacturing industry and make mobile phones more affordable. <\/span>These changes will come into force once notified by the <a href=\"https:\/\/www.cbic.gov.in\/\" target=\"_blank\" rel=\"noopener\">CBIC<\/a>.<\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Particulars<\/b><\/td>\n<td><b>Old Rate<\/b><\/td>\n<td><b>New Rate<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Cellular Mobile Phone<\/span><\/td>\n<td><span style=\"font-weight: 400;\">20%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">15%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Charger\/Adapter of Cellular Mobile Phone<\/span><\/td>\n<td><span style=\"font-weight: 400;\">20%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">15%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Printed Circuit Board Assembly (PCBA) of Cellular Mobile Phone<\/span><\/td>\n<td><span style=\"font-weight: 400;\">20%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">15%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><strong>Pre-GST Vs. Post-GST Prices<\/strong><\/h3>\n<table>\n<tbody>\n<tr>\n<td><b>Particulars<\/b><\/td>\n<td><b>Pre-GST<\/b><\/td>\n<td><b>Post-GST<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Cost of manufacturing (a)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">10,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">10,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Excise duty @1% (b)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">100<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Base value for VAT calculation (c)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">10,100<\/span><\/td>\n<td><span style=\"font-weight: 400;\">10,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">VAT @14%\/GST @ 18% (d)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">1,414<\/span><\/td>\n<td><span style=\"font-weight: 400;\">1,800<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Sale price quoted by manufacturer to retailer (e) = (a) + (b) + (c) + (d)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">11,514<\/span><\/td>\n<td><span style=\"font-weight: 400;\">11,800<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Value addition\/packing charges (f)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">600<\/span><\/td>\n<td><span style=\"font-weight: 400;\">600<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Total value (g) = (c) + (f)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">10,700<\/span><\/td>\n<td><span style=\"font-weight: 400;\">10,600<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">VAT @ 14%\/GST @ 18% on above (f) value<\/span><\/td>\n<td><span style=\"font-weight: 400;\">84 (1,498 &#8211; 1,414)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">108 (1,908 &#8211; 1,800)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Total price<\/span><\/td>\n<td><span style=\"font-weight: 400;\">10,784<\/span><\/td>\n<td><span style=\"font-weight: 400;\">10,708<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><strong>Impact on Different Price Segments<\/strong><\/h3>\n<ul>\n<li><b>Budget Smartphones:<\/b><span style=\"font-weight: 400;\"> The 18% GST rate led to a slight increase in prices for budget models, such as those from brands like Realme, Redmi, and Poco impacting affordability for price-sensitive consumers.<\/span><\/li>\n<li><b>Mid-Range Smartphones:<\/b><span style=\"font-weight: 400;\"> This segment experienced a relatively neutral impact, with price adjustments varying across brands.\u00a0 Brands like Samsung, OnePlus, and Vivo fall into this category.<\/span><\/li>\n<li><b>Premium Smartphones:<\/b><span style=\"font-weight: 400;\"> High-end devices were less affected by the GST rate due to their overall pricing. Brands like Apple, Samsung (flagship models such as Galaxy S24 series), Google Pixel and OnePlus premium series are examples.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Can-ITC-Be-Claimed-on-Mobile-Phones\"><\/span><strong>Can ITC Be Claimed on Mobile Phones?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Yes, <\/span><a href=\"https:\/\/razorpay.com\/learn\/input-tax-credit-under-gst\/\"><span style=\"font-weight: 400;\">Input tax Credit<\/span><\/a><span style=\"font-weight: 400;\"> (ITC) can be claimed on mobile phones under certain conditions. Businesses can claim ITC on mobile phones purchased for business use, provided they have a valid <\/span><a href=\"https:\/\/razorpay.com\/blog\/tax-invoice\/\"><span style=\"font-weight: 400;\">tax invoice<\/span><\/a><span style=\"font-weight: 400;\"> and the phone is used for business purposes. However, personal use or employee benefits do not qualify for ITC. Proper GST-compliant invoices and documentation are required to claim ITC, ensuring the supplier\u2019s GSTIN, invoice details, and compliance with GST rules.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How-Smartphones-Dealers-Benefit-from-GST\"><\/span><strong>How <\/strong><strong>Smartphones <\/strong><strong>Dealers Benefit from GST?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The implementation of GST and new <a href=\"https:\/\/razorpay.com\/learn\/gst-rates-goods-and-service-tax-rates-slabs\/\">GST slab rates<\/a> has brought several advantages to mobile phone dealers:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Simplified Tax Structure:<\/b><span style=\"font-weight: 400;\"> The uniform 18% GST rate across India under HSN code 8517 replaced the complex VAT system, reducing compliance burdens and operational complexities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Input Tax Credit (ITC):<\/b><span style=\"font-weight: 400;\"> Dealers can claim ITC on inputs like rent, electricity, and transportation, improving cash flow.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Reduced Paperwork:<\/b><span style=\"font-weight: 400;\"> GST&#8217;s digital processes and reduced documentation requirements have streamlined operations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Enhanced Consumer Confidence:<\/b><span style=\"font-weight: 400;\"> A uniform pricing structure across states has boosted consumer trust and increased sales.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Supply Chain Efficiency:<\/b><span style=\"font-weight: 400;\"> GST has improved supply chain management by eliminating inter-state check-posts and reducing transit time.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"GST-Compliance-Challenges-for-Mobile-Phone-Retailers-in-India\"><\/span><strong>GST Compliance Challenges for Mobile Phone Retailers in India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Mobile phone retailers face several compliance challenges under the GST regime, impacting invoicing, tax credits, returns, and overall business operations:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Invoicing Requirements:<\/b><span style=\"font-weight: 400;\"> Retailers must issue GST-compliant invoices that include details such as GSTIN, itemized prices, and applicable taxes. Failure to meet these requirements can lead to penalties.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Input Tax Credit (ITC) Reconciliation:<\/b><span style=\"font-weight: 400;\"> Proper reconciliation of ITC is crucial to claim credits accurately. Retailers must reconcile purchases with GST invoices received from suppliers to avoid discrepancies.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>GST Return Filing:<\/b><span style=\"font-weight: 400;\"> Retailers must file GST returns on time, detailing sales, purchases, and tax liabilities. Delayed or incorrect filings can result in penalties and interest charges.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Challenges with Bundled Offers:<\/b><span style=\"font-weight: 400;\"> Invoicing for bundled offers or discounts, common in the mobile phone sector, requires clear segregation of individual components for correct tax calculation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Handling Returns, Exchanges, and Warranties:<\/b><span style=\"font-weight: 400;\"> GST implications vary for returns, exchanges, and warranties. Proper documentation and adjustment of tax credits are necessary to comply with GST regulations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b style=\"font-size: 19px;\">Impact on Inventory and Accounting:<\/b><span style=\"font-weight: 400;\"> GST affects inventory management and accounting practices due to changes in tax rates, credits, and compliance requirements. Retailers must maintain accurate records and update systems accordingly.<\/span><\/li>\n<\/ul>\n<p><em><strong>Also Read: <\/strong><\/em><\/p>\n<ul>\n<li><em><strong><a href=\"https:\/\/razorpay.com\/learn\/gst-on-food-and-restaurants\/\">GST on Food<\/a><\/strong><\/em><\/li>\n<li><a href=\"https:\/\/razorpay.com\/learn\/gst-on-rent\/\"><em><strong>GST on Rent<\/strong><\/em><\/a><\/li>\n<li><a href=\"https:\/\/razorpay.com\/learn\/gst-on-insurance-premium\/\"><em><strong>GST on Insurance Premium<\/strong><\/em><\/a><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Frequently-Asked-Questions\"><\/span><b>Frequently Asked Questions<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><b>1. What is the GST Rate on Imported Mobile Phones?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The GST rate on imported mobile phones and their components is <\/span><b>18%<\/b><span style=\"font-weight: 400;\">. However, the overall cost of imported phones is influenced by various factors such as custom duty, import duty on components, and IGST.<\/span><\/p>\n<h3><b>2. What is the difference between GST and the old tax regime for mobile phones?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Under the old tax regime, mobile phones were subject to VAT and excise duty, which varied across states. GST has replaced these taxes with a uniform rate of 18%.<\/span><\/p>\n<h3><strong>3. What is the GST on an iPhone?<\/strong><\/h3>\n<p>The <a href=\"https:\/\/razorpay.com\/learn\/gst-on-iphone\/\">GST on an iPhone<\/a>, like other mobile phones, is set at 18% in India. This rate applies uniformly to both smartphones and feature phones.<\/p>\n<h3>4. What is the GST on smartphones?<\/h3>\n<p>The GST on smartphones is set at 18% in India.<\/p>\n<h3><b>5. Is there GST on mobile phone accessories?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Yes, mobile phone accessories are subject to 18% GST.<\/span><\/p>\n<h3><b>6. <\/b><b>How to Save GST on Mobile phones while buying?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">To save on GST, buy your mobile phone from authorised sellers who provide GST invoices. If purchasing for business purposes, this allows you to claim Input Tax Credit (ITC)<\/span><\/p>\n<h3><b>7. Is GST applicable on second-hand mobile phones?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Yes, GST applies to the sale of second-hand mobile phones in India. The applicable rate is the same as for new mobile phones, currently set at 18%.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is the GST on Mobile Phones in India? Updated GST Rate on Mobile Phones Effective 22 September 2025 The price of mobile phones is not decreasing. The GST rate on mobile phones continues to be 18%, despite the introduction of the new tax system. No changes have been made to the GST rate for<\/p>\n","protected":false},"author":151156614,"featured_media":13621,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3913],"tags":[3906,3909,3907,3908,3910],"class_list":{"0":"post-12199","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-gst-rates-goods-and-service-tax-rates-slabs","8":"tag-gst-on-mobile","9":"tag-gst-on-mobile-accessories","10":"tag-gst-on-mobile-phone","11":"tag-gst-on-smartphones","12":"tag-mobile-phone-hsn-code"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/12199","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/users\/151156614"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=12199"}],"version-history":[{"count":30,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/12199\/revisions"}],"predecessor-version":[{"id":18641,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/12199\/revisions\/18641"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media\/13621"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=12199"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=12199"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=12199"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}