Summary of this article
GST simplified to 5 per cent and 18 per cent, luxury 40 per cent.
Mobile phones remain taxed at 18 per cent, no relief provided.
ACs, fridges, monitors move to 18 per cent from higher rates.
The Indian government has simplified the Goods and Services Tax (GST) structure, reducing the number of tax slabs to two main rates of 5 per cent and 18 per cent, while introducing a 40 per cent rate for sin and luxury goods. With reduced GST applied on several everyday goods and services, such as televisions, air conditioners and insurance policies, the change is anticipated to benefit customers.
All these changes are set to come into effect from September 22, 2025. Now, buyers are concerned about mobile phones and whether the GST changes will make them more affordable.
Are Mobile Phones Getting Cheaper?
No relief is available for mobile phones under the recent GST overhaul. Smartphones will continue to be taxed at 18 per cent, and there has been no official announcement regarding any reduction in GST for these devices. Buyers looking for lower prices on new phones will not see any immediate benefits.
According to media reports, the India Cellular & Electronics Association (ICEA) had earlier requested the government to reduce the GST on mobile phones from 18 per cent to 5 per cent. The association said that mobile phones have become essential digital tools for millions of Indians and a lower tax rate could improve affordability and boost demand. However, the recent GST overhaul did not change the tax rate for smartphones, leaving buyers without any immediate relief.
Changes for Other Goods Under Revised GST
Though smartphones will continue being taxed at 18 per cent, various other products have benefited from the latest GST revisions. Key electronic goods, such as air conditioners and refrigerators, which were previously taxed at 28 per cent, will now attract 18 per cent GST. Monitors and projectors have also moved to the 18 per cent slab from higher rates.
In addition, life and health insurance premiums have been brought under the nil GST category, reducing costs for policyholders. These changes are intended to reduce consumer costs and boost demand for financial and electronic goods.
