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Guide · GST Rates

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.

TaxClue Editorial Desk Updated 18 August 2026 5 min read 15 FAQs answered
Updated for FY 2025-26 GST Expert Reviewed HSN 8517 · Retained under GST 2.0
Quick Answer

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.

Smartphone / feature phone 18%
Chargers & accessories 18%
Repair services 18%
Business ITC Available
At a glance

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%.

ItemHSNGST RateITC (business)
Smartphone851718%Yes
Feature / basic keypad phone851718%Yes
Charger / adapter850418%Yes
Earphones / headphones / TWS851818%Yes
Power bank850718%Yes
Phone case / cover3926 / 420518%Yes
Screen guard / tempered glass3919 / 392018%Yes
Smartwatch / fitness band851718%Yes
Mobile repair service998718%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?

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The rate story

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.

12%

Before 1 April 2020

  • Old rate on mobile handsets
  • Inputs/parts taxed at 18%
  • Inverted duty → refund backlog
  • Now historical only
vs
18%

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
GST 2.0 did not cut phone GST

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.

Context

GST on Related Electronics After GST 2.0

ProductOld RateCurrent Rate (GST 2.0)
Mobile phones18%18% · unchanged
Laptops & tablets18%18% · unchanged
Televisions (all sizes)28%18% · reduced
Air-conditioners28%18% · reduced
Dishwashers / large monitors28%18% · reduced

GST 2.0 removed most 28% goods to 18%. Verify any specific item on the GST portal before relying on it.

Buying from abroad

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.

Assessable valueDeclared CIF value of the phone
→
Basic Customs Duty~20% BCD on a CBU handset
→
Social Welfare Surcharge10% of BCD (≈2% of value)
→
IGST18% on value + BCD + SWS
  • 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.
Worked example

How 18% GST Adds Up — ₹25,000 Phone

18% Retail purchase

Phone base price₹25,000
GST @ 18%₹4,500
You pay₹29,500

ITC Business buyer

Invoice total₹29,500
ITC reclaimed₹4,500
Net cost₹25,000

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.

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For businesses

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
TaxClue Insight

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
Government sourcesRates & notifications: gst.gov.in · CBIC rate finder: cbic-gst.gov.in · 12%→18% hike: Notification 03/2020-CT(R), eff. 1 April 2020 · GST 2.0 two-slab structure eff. 22 September 2025 (phones retained at 18%) · Blocked credit: Section 17(5), CGST Act 2017
People also ask

Frequently Asked Questions

Rate & HSN
What is the GST rate on mobile phones in India?
GST on mobile phones is a flat 18% (9% CGST + 9% SGST), under HSN code 8517. It applies to every mobile phone — smartphones, feature phones and basic handsets — with no distinction by price, brand or 2G/4G/5G technology. The rate was raised from 12% to 18% effective 1 April 2020 and was retained unchanged under the GST 2.0 reform of 22 September 2025.
Did GST 2.0 reduce GST on smartphones in September 2025?
No. The GST 2.0 rationalisation effective 22 September 2025 moved to a two-slab 5%/18% system and cut many 28% electronics like TVs and air-conditioners to 18%. Mobile phones were already at 18% and were left unchanged. Despite industry requests to cut the phone rate to 5%, smartphones continue to attract 18% GST.
What is the HSN code for mobile phones under GST?
Mobile phones are classified under HSN code 8517, which covers telephones for cellular networks and other wireless communication apparatus. The GST rate under this heading for mobile handsets is 18%. Chargers fall under 8504, earphones under 8518 and power banks under 8507 — all also at 18%.
Is GST the same for feature phones and smartphones?
Yes. Both feature (keypad) phones and smartphones attract the same 18% GST under HSN 8517. GST makes no distinction based on price, brand, operating system or technology — a basic ₹1,500 handset and a flagship smartphone are taxed at the same 18% rate.
Why did GST on mobile phones increase from 12% to 18%?
The GST Council raised the rate to 18% effective 1 April 2020 to correct an inverted duty structure — mobile phone parts and inputs were taxed at 18% while the finished phone was only 12%. That mismatch left manufacturers with accumulated input tax credit and refund claims. Aligning the phone rate with its inputs at 18% resolved the inversion.
Accessories & Repair
What is the GST rate on phone chargers and accessories?
Phone chargers and adapters (HSN 8504), earphones and TWS (8518), power banks (8507), cases and covers (3926/4205) and screen guards (3919/3920) all attract 18% GST. Effectively the entire mobile accessory ecosystem is taxed at 18%, the same as the handset itself.
What is the GST rate on mobile phone repair services?
Mobile phone repair and maintenance services attract 18% GST. This covers screen replacement, battery replacement, software servicing and water-damage repair. Where a service centre bills parts plus labour as a single composite supply, the principal supply (the service) rate of 18% applies. Standalone spare parts also attract 18%.
What is the GST rate on smartwatches and fitness bands?
Smartwatches and fitness bands attract 18% GST, generally classified under HSN 8517 (or 9102 for watch-primary devices). Whether it is an Apple Watch, a Galaxy Watch or a budget fitness tracker, the rate is 18%. Straps, charging cables and cases for wearables are also taxed at 18%.
Imports & Pricing
What is the GST on imported mobile phones?
An imported, fully-assembled phone (CBU) attracts IGST at 18% along with Basic Customs Duty of around 20%, plus a 10% Social Welfare Surcharge on the BCD. IGST is charged on the assessable value plus these customs duties. The total effective import burden is roughly 42–44% of declared value, which is why grey-market imported flagships cost significantly more in India.
Why are iPhones and flagships cheaper when made in India?
Phones manufactured in India under the Production Linked Incentive (PLI) scheme are produced locally and avoid the import customs duties (BCD and surcharge) that apply to CBU imports. They still carry 18% GST, but skipping the ~20% BCD and 10% surcharge makes locally assembled iPhones and Samsung flagships noticeably cheaper than grey-market imports.
ITC & Business
Can a business claim Input Tax Credit (ITC) on mobile phones?
Yes. A GST-registered business can claim ITC on the 18% GST paid on phones bought for business use, provided it holds a valid tax invoice with its GSTIN, the purchase appears in its GSTR-2B, and the supplier has paid the tax. ITC is blocked where the phone is for purely personal use or is gifted to an employee for personal use under Section 17(5).
Is ITC blocked on phones given to employees?
A phone provided to an employee for official/business use is ITC-eligible. But a phone gifted to an employee for personal use is treated as a gift and the credit is blocked under Section 17(5) of the CGST Act. The distinction is whether the handset is a business tool or a personal perquisite.
How much GST will I pay on a ₹25,000 phone?
At 18%, a ₹25,000 phone carries ₹4,500 GST, so a consumer pays ₹29,500 in total. A GST-registered business buying the same phone for official use reclaims the ₹4,500 as Input Tax Credit, bringing its effective cost back down to ₹25,000. You can compute any amount with our GST calculator.
Do phone dealers need GST registration?
Yes, once aggregate turnover crosses the threshold — ₹40 lakh for a goods supplier in most states (₹20 lakh in special-category states). Sellers supplying through e-commerce operators generally need registration regardless of turnover. Registered dealers must charge 18% and quote HSN 8517 on the invoice.
Can I claim ITC on a phone under the composition scheme?
No. Taxpayers registered under the composition scheme cannot claim Input Tax Credit on any purchase, including mobile phones. They pay a flat composition rate on turnover instead of the regular mechanism, so the 18% GST on a phone becomes an embedded cost for them.
If you would rather not do it yourself

Related TaxClue services

GST RegistrationRegister your mobile shop or electronics business and get your GSTIN online.See the service →GST Return FilingMonthly GSTR-1 & 3B with ITC on phones and accessories reconciled.See the service →ITC ReconciliationClaim eligible phone ITC and avoid blocked-credit errors.See the service →GST CalculatorWork out the 18% GST on any phone price in seconds.See the service →