Are smartphones getting cheaper after the new GST revamp? Here’s what we know

smartphones

The government has just given India’s tax system a big makeover, calling it the “Next-Gen GST.” The idea is to make things simpler, reduce confusion, and help people save money on many everyday items. But if you were hoping that your next smartphone would get cheaper, you may be a little disappointed.

What has changed?

Earlier, there were four different GST tax slabs — 5%, 12%, 18%, and 28%. Now, these have been cut down to just two main rates:

–5% for essentials like basic food items and daily-use products.

–18% for most other goods and services.

On top of that, there’s a special 40% tax for luxury items and things the government wants to discourage, such as big fancy cars, liquor, tobacco, and online betting.

This change will kick in from September 22, 2025. The government says it will make life easier for businesses and also help people spend less on many products.

What about mobile phones?

Here’s the catch: mobile phones will not get cheaper. The GST rate on smartphones and feature phones remains at 18%, just like before. So whether you’re eyeing a budget phone or a high-end one, the prices won’t drop because of this new system.

Other items like soaps, shampoos, televisions, air-conditioners, bicycles, and even solar equipment will see a price cut, but not phones.

Why didn’t phones get included?

Industry groups had strongly requested that the tax on phones be lowered. Their argument was simple, phones are no longer a luxury. They are a necessity for things like online classes, banking, government services, and UPI payments. Many suggested bringing the tax down to 12% or even 5% to make them more affordable.

But the GST Council chose not to make that change, at least for now.

The takeaway

So yes, the GST revamp is good news for people buying daily-use products and some gadgets, but not for smartphone buyers. If you were waiting for this reform to bring phone prices down, you’ll have to wait longer. Your next smartphone will cost just as much as before.