---
title: "GST Council May Cut Tax on Mobile Phones; Smartphones Could Become Cheaper"
english_title: "GST Council May Cut Mobile Phone GST to 5%; Smartphones Could Get Cheaper"
publisher: "Truevision English News"
canonical_url: "https://english.truevisionnews.com/news/380462/gst-council-mobile-phone-tax-cut-5-percent-smartphones-cheaper"
published_at: "2026-08-30T20:39:00+05:30"
category: "National"
language: "en"
image: "https://cf.zdn.im/img/truevisionnews.com/0/image-uploads/6a9447d426258_gst-council-mobile-phone-tax-cut-5-percent-smartphones-cheaper.jpg"
keywords: ["GST Council", "mobile phone GST", "smartphone prices India", "GST rate on mobile phones", "GST Council meeting", "Nirmala Sitharaman"]
---

# GST Council May Cut Tax on Mobile Phones; Smartphones Could Become Cheaper

> **Lead Summary:** **New Delhi: **Mobile phones in India could become significantly cheaper if the Goods and Services Tax Council approves a proposed reduction in the tax rate on selected smartphones. The GST Council, chaired by Union Finance Minister Nirmala Sitharaman, is expected to take up several important taxation-related issues at its upcoming meeting scheduled for September 12.

## Article Content

**New Delhi: **Mobile phones in India could become significantly cheaper if the Goods and Services Tax Council approves a proposed reduction in the tax rate on selected smartphones. The GST Council, chaired by Union Finance Minister Nirmala Sitharaman, is expected to take up several important taxation-related issues at its upcoming meeting scheduled for September 12.

One of the key proposals under consideration is reportedly a reduction in GST on mobile phones priced up to Rs 25,000. At present, mobile phones attract an 18% GST rate. If the proposed reduction is approved, the tax burden on consumers could come down considerably, potentially making smartphones more affordable for a large section of buyers.

The proposed move is also being viewed as an effort to revive demand in the domestic mobile phone market and provide additional support to India’s electronics manufacturing sector. A lower tax rate could benefit both consumers and manufacturers, particularly at a time when smartphone prices have come under pressure because of rising component costs.

Mobile phone manufacturers have increased prices in recent months amid a sharp rise in memory chip costs linked to global supply and market conditions. Any reduction in GST could therefore provide some relief to companies as well as consumers.

The GST Council is also expected to examine practical difficulties faced by businesses and industries, along with measures to speed up tax refunds. Another important issue likely to be discussed is the inverted duty structure, under which taxes on certain raw materials and inputs can be higher than the tax applicable to finished products, creating difficulties for manufacturers.

According to sources, the broader objective is to simplify the GST framework, address industry-related concerns and create a more business-friendly taxation environment. Greater clarity in tax rules and simpler compliance procedures are also expected to be part of the discussions.

However, the proposed reduction in GST on mobile phones is not final yet. The actual tax rate and the products that may qualify for any relief will depend on the decisions taken by the GST Council at its meeting.

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 smartphones cheaper India, Rs 25000 smartphones, 5 percent GST, 18 percent GST, electronics manufacturing India, GST tax cut, inverted duty structure, India smartphone market, mobile phone news, GST latest news, India business news

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