GST on Mobile Phones in India
Mobile Phones attract 18% GST in India under HSN code 8517. The rate is the same in every state.
Working out the GST on mobile phones
Mobile phones are taxed at a flat 18%, so the arithmetic is straightforward. Multiply the taxable value by 18 percent to get the GST, then add it to the base price for the total.
- For an intra-state sale, the 18% splits into 9% CGST and 9% SGST.
- For an inter-state sale, a single 18% IGST applies instead.
- The calculator on this page is pre-set to the 18% rate and handles both cases.
A worked example
Suppose a mobile phone has a taxable value of ₹20,000 before tax. Applying 18% GST works out as follows.
GST on mobile phones and accessories
Every mobile phone sits under HSN 8517 at a flat 18%, whether it is a flagship smartphone or a basic feature phone. There is no reduced rate for budget handsets, a point often misunderstood. The accessories bundled with a phone can carry their own codes, shown below.
| Item | HSN | GST rate |
|---|---|---|
| Smartphones & feature phones | 8517 | 18% |
| Chargers & power adapters | 8504 | 18% |
| Earphones & headsets | 8518 | 18% |
| Phone cases & tempered glass | 3926 / 7007 | 18% |
The 18% on your bill, broken down
On a phone priced at 20,000 before tax, GST adds 3,600, for a total of 23,600. Within a state that 18% splits into 9% CGST and 9% SGST. On an inter-state purchase, common when you order online from another state, it appears as a single 18% IGST. The total is identical either way.
Input tax credit and business phones
A GST-registered business can claim input tax credit on a phone bought for business use, provided the tax invoice carries the GSTIN and HSN 8517 and the phone is used for taxable supplies. A handset bought for personal use is not eligible, even if you occasionally take work calls on it.
The exchange offer trap
This catches almost everyone. If a phone is listed at ₹25,000 and you trade in your old handset to pay only ₹20,000, GST is charged on the full ₹25,000, not on the ₹20,000 you actually paid. Under GST law barter counts as supply, so the value of the phone you traded in is part of the consideration. The old VAT regime taxed only the reduced amount, which is why this surprises people. Check the invoice on any exchange deal: the taxable value should be the full listed price.
Bundled accessories and discounts
A phone sold with its charger and USB cable is a composite supply, meaning the whole bundle is taxed at the phone's 18% rate because the handset is the principal supply. Earphones sold in the same box are not naturally bundled and can be treated as a mixed supply, taxed separately. The practical effect is that you rarely see a separate tax line for the charger.
Discounts work differently depending on timing. A discount shown on the invoice reduces the taxable value, so GST is charged on the discounted price. A post-sale discount such as later cashback does not change the taxable value on the original invoice, so the GST already charged stands.
Imported phones and repairs
Imports
An imported handset attracts IGST at 18%, but the base for that calculation is not just the phone's price. IGST applies to the assessable value plus basic customs duty plus any other applicable duty, so the tax compounds. Budget 2024 cut the basic customs duty on phones, PCBA and chargers from 20% to 15%. A GST-registered importer can claim the IGST paid at import as input tax credit.
Repair services
Mobile repair is a service, taxed at 18% on the labour charge. Repair shops can claim input tax credit on spare parts they buy. A second-hand phone sold by a registered dealer also attracts 18%, though the dealer may charge it on the margin rather than the full value.
Buying online and TCS
On a marketplace sale the platform collects tax at source under Section 52 and deducts TCS before paying the seller. For you as the buyer nothing changes: the rate is still 18% and it is built into the listed price. On an inter-state order it appears as IGST rather than a CGST and SGST split. If you want to claim ITC, keep the tax invoice rather than just the order summary, and make sure it carries your GSTIN.
Frequently asked questions
All mobile phones attract 18% GST under HSN code 8517. This covers both smartphones and feature phones, with no lower rate for basic handsets.
No. There is no concessional rate for budget or feature phones. The 18% rate applies to every handset regardless of price.
Within the same state it is 9% CGST plus 9% SGST. On an inter-state purchase, including most online orders from another state, it is a single 18% IGST. The total is the same.
A GST-registered business can claim ITC on a phone used for business, as long as the invoice shows the GSTIN and HSN 8517. A phone bought for personal use does not qualify.
Chargers, earphones and cases are generally taxed at 18% too, but under their own HSN codes. The rate usually matches the phone even though the classification differs.