September 5, 2025

Hold on, shoppers! India’s GST has got a major makeover from September 22, making tax slabs leaner and meaner. The government chopped down four tax slabs (5%, 12%, 18%, 28%) into just two, plus a super high 40% slab reserved for luxury goods like snazzy cars, tobacco, and cigarettes. The big idea? To make most things cheaper and get people spending more, which will pump up the Indian economy. But guess what — mobile phones didn’t get the memo. They remain stuck at a solid 18% GST rate, ignoring loud calls from the mobile industry to slash the tax down to 5%, which is reserved for essential goods. So why no tax break on mobiles? The India Cellular and Electronics Association (ICEA) pleaded for mobile phones and their parts to join the 5% GST club, calling the 18% rate "regressive." They made a strong case, saying mobiles are not luxury but a necessity since they are the gateway to India’s digital world. ICEA pointed out that India’s mobile phone sector is booming. From making goods worth Rs 18,900 crore in 2015, production shot up to a whopping Rs 5.45 lakh crore in 2025! Also, exports crossed Rs 2 lakh crore, placing India as the world’s second-largest mobile phone maker. But despite this giant leap, the domestic market seems weak, which makes tax cuts even more important to boost local buying. The mobile tax story has history: mobiles started at a 12% slab as a temporary deal. Then in 2020, it jumped sharply to 18%, causing a lot of headaches for buyers. Before GST, states kept mobile phone VAT at 5% because they saw phones as essential. Now, ICEA warns the 18% tax hurts affordability and slows demand, which isn’t good news for buyers or makers. So, while many everyday products will now be cheaper thanks to the GST revamp, mobile phone lovers will have to wait a little longer to see their gadgets get lighter on the wallet. For now, mobiles stay taxed at 18%, no discount in sight despite all the buzz.

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Tags: Gst revamp, Mobile phones tax, India gst, Icea, Mobile phone industry, Tax slabs,