GST on Mobile Phones in India —
A Flat 18%
The correct GST rate for smartphones, feature phones, chargers, accessories, repairs and imports — plus how a GST-registered business claims Input Tax Credit on phones.
GST on mobile phones is a flat 18% (9% CGST + 9% SGST) under HSN code 8517 — for every smartphone, feature phone and basic handset, with no distinction by price, brand or 2G/4G/5G technology. The rate was hiked from 12% to 18% on 1 April 2020 and was retained unchanged under GST 2.0 (effective 22 September 2025). Chargers, earphones, cases and repair services are also 18%. A GST-registered business can claim Input Tax Credit on phones bought for official use.
GST Rate on Mobile Phones & Accessories
The GST rate and HSN code for mobile phones and every common related item. Everything in the mobile ecosystem sits at 18%.
| Item | HSN | GST Rate | ITC (business) |
|---|---|---|---|
| Smartphone | 8517 | 18% | Yes |
| Feature / basic keypad phone | 8517 | 18% | Yes |
| Charger / adapter | 8504 | 18% | Yes |
| Earphones / headphones / TWS | 8518 | 18% | Yes |
| Power bank | 8507 | 18% | Yes |
| Phone case / cover | 3926 / 4205 | 18% | Yes |
| Screen guard / tempered glass | 3919 / 3920 | 18% | Yes |
| Smartwatch / fitness band | 8517 | 18% | Yes |
| Mobile repair service | 9987 | 18% | Yes |
Rates reflect the GST 2.0 two-slab structure effective 22 September 2025 — mobile phones were retained at 18%. Confirm HSN and rate on the official GST portal before invoicing.
Selling phones or accessories and need the right HSN on every invoice?
Get GST Registration →Why Mobile Phones Are Taxed at 18%
Mobile phones sat at 12% until 31 March 2020. From 1 April 2020 the GST Council moved them to 18% to end an inverted duty structure — parts and inputs were taxed higher than the finished phone, leaving manufacturers with refund pile-ups. Under the GST 2.0 rationalisation (effective 22 September 2025) many electronics like large TVs and air-conditioners were cut from 28% to 18%, but phones — already at 18% — were left unchanged.
Before 1 April 2020
- Old rate on mobile handsets
- Inputs/parts taxed at 18%
- Inverted duty → refund backlog
- Now historical only
Current — since 1 Apr 2020
- All phones, all price points
- Same rate for 2G / 4G / 5G
- Retained under GST 2.0 (Sep 2025)
- Fixed the inverted duty structure
Despite industry requests (ICEA sought a cut to 5%), the GST 2.0 reform effective 22 September 2025 kept mobile phones at 18%. Phones are treated as standard goods, not essentials — so unlike TVs and ACs (28%→18%), there was no reduction for handsets.
GST on Related Electronics After GST 2.0
| Product | Old Rate | Current Rate (GST 2.0) |
|---|---|---|
| Mobile phones | 18% | 18% · unchanged |
| Laptops & tablets | 18% | 18% · unchanged |
| Televisions (all sizes) | 28% | 18% · reduced |
| Air-conditioners | 28% | 18% · reduced |
| Dishwashers / large monitors | 28% | 18% · reduced |
GST 2.0 removed most 28% goods to 18%. Verify any specific item on the GST portal before relying on it.
GST & Duty on Imported Mobile Phones
Importing a fully-assembled phone (a Completely Built Unit) attracts customs duty on top of IGST. This is why a grey-market iPhone or flagship costs far more in India than its overseas sticker price.
- Basic Customs Duty (BCD): around 20% on the assessable value for a CBU phone.
- Social Welfare Surcharge: 10% of the BCD amount (roughly 2% of value).
- IGST @ 18%: charged on assessable value + BCD + SWS combined.
- Total effective import burden works out to roughly 42–44% of declared value.
- Phones made in India under the PLI scheme avoid this import duty — one reason local prices stay competitive.
How 18% GST Adds Up — ₹25,000 Phone
18% Retail purchase
ITC Business buyer
A consumer bears the full ₹4,500 GST. A GST-registered business buying the same phone for official use claims that ₹4,500 back as Input Tax Credit, so its real cost is the base ₹25,000.
Want the exact GST on any phone price? Use our free calculator.
Open GST Calculator →Claiming ITC on Mobile Phones
A GST-registered business can claim Input Tax Credit on the 18% GST paid on a phone — but only where the phone is used for business and normal ITC conditions are met.
ITC is available if
- The phone is used for business / official purposes
- You hold a valid tax invoice with your GSTIN
- The purchase reflects in your GSTR-2B
- The supplier has paid the tax to the government
ITC is blocked if
- The phone is gifted to an employee for personal use
- It is bought for purely personal consumption
- It is used for exempt / non-business supplies
- You are under the composition scheme
For a business, the sticker price is not the real cost. Since a phone bought for official use is fully ITC-eligible, the effective cost is the pre-GST price — the 18% simply flows through your returns. The trap is buying in a personal name or gifting handsets to staff, where the credit gets blocked under Section 17(5).
- Buy in the business name with GSTIN on the invoice
- Match the purchase in GSTR-2B before claiming
- Use HSN 8517 for the handset on sale invoices
- Keep phones for official — not personal — use
- File GSTR-3B claiming eligible ITC
- Reconcile accessory HSN codes separately
Frequently Asked Questions
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