GST on Mobile Phones in 2026: Tax Rates and HSN Classification

Mobile phones have become indispensable in modern life, supporting communication, digital payments, education, remote work, and business operations. With smartphones now acting as productivity tools rather than mere communication devices, understanding their tax treatment under GST is crucial for individuals, businesses, retailers, and importers alike.

Following the GST 2.0 reforms, the Indian government simplified the GST structure into four slabs 0%, 5%, 18%, and 40%. Despite this restructuring, mobile phones and smartphones continued to remain within the 18% GST slab, ensuring consistency and predictability in pricing across the country.

This article provides a comprehensive explanation of GST on mobile phones, covering tax rates, HSN classification, pricing implications, input tax credit eligibility, compliance requirements, and the treatment of accessories and refurbished devices. It also highlights how professional platforms like TMWala can simplify GST compliance and decision-making for buyers, sellers, and importers.

GST on Mobile Phones

Under the GST framework, mobile phones are classified as electronic goods and are taxed uniformly across India. Whether a mobile handset is manufactured domestically or imported, the GST rate remains the same. This uniformity has eliminated the earlier complexities of VAT, excise duty, and state-specific taxes that existed before GST.

GST on mobile phones applies at every stage of the supply chain, from manufacturer to wholesaler to retailer, ensuring transparency and seamless credit flow under the GST system.

GST Rate on Mobile Phones

The GST rate on mobile phones is 18%. This rate applies to all types of mobile devices, including feature phones, smartphones, and premium flagship models, regardless of brand, operating system, or specifications.

The mobile phone GST rate remains unchanged at 18% even after GST 2.0. While several goods were shifted across slabs during the restructuring, mobile phones were retained in the same category due to their widespread usage and high economic relevance.

GST on Smartphones

GST on smartphones is charged at 18% of the transaction value. Whether the device is entry–level or high–end, the tax rate remains consistent, making pricing easier to understand for consumers and businesses alike.

GST on Mobile Handset Purchase

GST on mobile handset purchases applies equally to individuals and businesses. Individual buyers bear the full GST cost as part of the purchase price. However, GST-registered businesses may be eligible to claim input tax credit, provided the mobile phones are used for business purposes.

For example, if a smartphone is priced at ₹50,000, GST of ₹9,000 is added, bringing the total invoice value to ₹59,000.

HSN Classification and Its Importance

Correct classification under the Harmonized System of Nomenclature (HSN) is essential under GST. It determines the applicable tax rate, ensures accurate return filing, and enables buyers to claim valid input tax credit.

Mobile Phone HSN Code and GST Rate

The mobile phone HSN code and GST rate fall under HSN Chapter 85, which covers electrical machinery and electronic equipment.

HSN Code For Smartphones

The HSN code for telephone sets is 8517, which includes smartphones, and other devices for the transmission or reception of voice, images, or data.

Incorrect use of HSN codes can lead to mismatches in GST returns, denial of ITC, and potential penalties. Platforms like TMWala help businesses apply the correct classification and avoid compliance risks.

GST Rate on Mobile Accessories

Mobile phones are often purchased along with accessories, each of which attracts GST independently.

The GST rate on mobile accessories is generally 18%. This includes items such as earphones, power banks, cases, screen protectors, and wireless devices.

GST on Mobile Chargers

GST on mobile chargers is charged at 18%. Chargers sold separately are taxed independently, even if they are designed for a specific handset.

GST on Mobile Battery

GST on mobile battery is also levied at 18%, whether sold as a replacement component or as part of bundled accessories.

Post GST 2.0, most electronic accessories and components have been aligned to the 18% slab, simplifying compliance and inventory management for sellers.

Impact of GST on Mobile Phone Pricing

GST has brought clarity and uniformity to mobile phone pricing across India. While the single tax system eliminated cascading taxes, the 18% rate still has a noticeable impact on the final purchase price, especially for premium smartphones.

Imported mobile phones attract customs duties in addition to GST, increasing the total landed cost. However, GST-registered importers can claim IGST paid at the time of import as input tax credit, significantly reducing the effective tax burden.

With advisory support from TMWala, businesses can accurately estimate total costs and optimize pricing strategies.

Input Tax Credit on Mobile Phones

One of the most valuable features of GST for businesses is the availability of input tax credit.

Input tax credit on mobile phones can be claimed by GST-registered businesses when mobile phones are purchased for official use, such as employee communication, sales operations, customer support, or field work.

ITC on Mobile Phone Under GST

ITC on a mobile phone under GST is allowed subject to the following conditions:

• The buyer must be registered under GST
• The mobile phone must be used for business purposes
• A valid GST tax invoice must be available
• The supplier must have filed corresponding GST returns

If a mobile phone is used partly for personal and partly for business purposes, ITC may be proportionately restricted. Proper internal policies and documentation are essential to support ITC claims. TMWala assists businesses in evaluating eligibility and maintaining compliant records.

GST on Refurbished and Used Mobile Phones

The market for refurbished smartphones is expanding rapidly due to affordability and sustainability concerns.

GST on refurbished mobile phones is generally charged at 18%. In certain cases, GST may be levied on the margin (difference between purchase and selling price) instead of the full value, subject to prescribed valuation rules and documentation.

Sellers must ensure correct invoicing and disclosures, while buyers should verify ITC eligibility based on supplier registration and transaction structure.

Role of Technology and Advisory Support

As GST regulations continue to evolve, compliance requires more than basic awareness. Accurate classification, automated reconciliation, and timely filings are critical.

TMWala offers end-to-end GST support for mobile phone businesses, including advisory services, return filing, ITC optimization, and compliance management. Combining technology with expert guidance, it allows businesses to focus on growth without tax-related stress.

Conclusion

Understanding GST on mobile phones is essential for making informed purchasing and business decisions. From knowing the applicable GST rate and HSN classification to managing pricing, compliance, and input tax credit, every detail impacts cost efficiency and legal compliance.

Whether you are an individual buying a smartphone or a business managing large-scale procurement, clarity on GST rules ensures transparency and prevents future complications. With stable tax rates and structured reforms, mobile phones continue to remain under the 18% slab, making awareness more important than ever.

With the right tools and expert platforms like TMWala, navigating GST on mobile phones becomes simpler, smarter, and far more manageable.

FAQs

1. What is the GST rate on mobile phones in India?
   The GST rate on mobile phones is 18%.
2. Has GST 2.0 changed the mobile phone tax rate?
   No, mobile phones continue to be taxed at 18% under GST 2.0.
3. Does GST apply to both smartphones and feature phones?
   Yes, GST applies uniformly to all mobile phones, including smartphones and feature phones.
4. What is the HSN code for mobile phones?
   Mobile phones fall under HSN code 8517.
5. Which HSN chapter covers mobile phones and accessories?
   Mobile phones and accessories are covered under HSN Chapter 85.
6. Is GST charged on mobile phone accessories?
   Yes, most mobile phone accessories attract 18% GST.
7. What is the GST rate on mobile chargers and batteries?
   GST on mobile chargers and mobile batteries is 18%.
8. Can businesses claim input tax credit on mobile phones?
   Yes, GST-registered businesses can claim input tax credit if the phones are used for business purposes.
9. Is GST applicable to refurbished mobile phones?
   Yes, refurbished mobile phones are generally taxed at 18%.
10. How can TMWala help with GST on mobile phones?
    TMWala provides GST advisory, compliance support, return filing, and ITC optimization.