Consumers hoping for tax cuts on electronics before the festive season will be disappointed regarding smartphones. Promotional offers and discounts are anticipated across the board, both in physical stores and online. This trend historically leads to increased sales during this time as people upgrade their devices, creating a strong demand.
Those planning to buy new phones are asking whether the GST on mobile phones will be reduced. The answer, for now, appears to be no. Smartphones will maintain their current prices. The anticipation of the smartphone industry to lower the GST from 18% to 5% didn’t materialize.
If the GST had been lowered, it would have led to lower prices and a boost in sales. The government, however, has decided to keep the 18% GST, so consumers will need to pay that rate when they purchase phones.
The mobile phone sector in India has seen tremendous growth. Production reached ₹5.45 lakh crore in fiscal year 2025, compared to ₹18,900 crore in fiscal year 2015. Export values have reached over ₹2 lakh crore. Consequently, India has become the second-largest mobile phone manufacturer globally.