Impact of GST Reforms on Smartphone and Laptop Prices

The Goods and Services Tax (GST) has simplified India’s tax system, affecting every industry, including electronics. Even a small rate change can influence the final prices of mobiles, laptops, and other gadgets.

While GST on smartphones and laptops has remained largely unchanged, rates on items like air conditioners and TVs have been reduced. So, what does this mean for buyers, sellers, and household budgets? Let’s find out.

Latest Updates from the GST Council

With the most recent changes, the 18% GST on smartphones and laptops remains the same. The two categories continue to be subject to the same 18% tax bracket, guaranteeing uniform tax rates in every state.

Before the GST, different states had different tax rates due to variations in the percentages of service tax and VAT. That resulted in uneven product prices. Such discrepancies have been lessened under the GST regime thanks to a single tax structure. Mobile phones have the HSN number 8517, and the same slab also includes related accessories like chargers, earphones, and batteries.

GST on laptops and smartphones has not decreased, although talks on rate rationalisation are still ongoing. However, rates for other electrical devices, like air conditioners, washing machines, and TVs up to 32 inches, have decreased from 28% to 18%. These revised rates make the products more accessible to customers.

Role of Import Duties & Components Costs

Under the latest GST reforms, the government has reduced import duties on key smartphone components from 15% to 10%. This includes battery covers, main lenses, SIM sockets, and back covers. This move is part of efforts to streamline India’s indirect tax system and simplify the GST structure for consumer electronics.

Additionally, the Union Budget 2025–26 has removed or lowered Basic Customs Duty (BCD) on sub-components. This includes camera modules, PCBAs, connectors, and USB cables used in mobile phone manufacturing. 

While the GST on laptops and mobile phones remains unchanged at 18%, these measures can help reduce overall production costs. It potentially leads to lower prices and increased household savings for customers.

Impact of GST Reforms on Laptop and Smartphone Prices

Although the 18% GST on laptops and smartphones has not changed, other reforms may have an impact on their prices. However, buyer confidence has increased because of the elimination of hidden expenses through clear billing, transparent prices, and consistent tax rates across states. Distribution and logistics expenses are also decreased by reduced import taxes on smartphone parts and the simplified structure of taxation. 

Therefore, depending on the proportion of imported parts and local manufacture, laptops may become slightly less expensive. While entry-level and mid-segment smartphones may witness minor price reductions. With all factors considered, these changes make pricing more predictable and may result in better deals for customers.

How Does GST Affect Consumer Durable Loans?

As the prices of consumer electronics rise, many people rely on a Consumer Durable Loan to purchase gadgets like laptops or smartphones. These loans often come with instant approval, minimal down payment, and a flexible loan tenure. This makes it easier for borrowers to manage the loan payment schedule.

Even though the GST on laptops and smartphones remains unchanged, the GST structure applies to certain charges associated with the loan. This includes processing fees, bounce charges, and additional interest in case of late payments.

Therefore, the GST paid on these service charges can slightly affect the total loan amount and EMI payments. Before submitting a loan application, borrowers should check the eligibility criteria, provide all required documents, and review the maximum loan amount available. With careful planning and an excellent credit score, customers can take advantage of these loans while keeping household savings and costs under control.

What Buyers Need to Look Out For

Buyers should keep an eye on taxes, fees, and loan costs to make the most of GST reforms:

Final prices will be impacted by other fees, including import tariffs, freight, distribution, and currency fluctuations, even if GST remains unchanged.

The reduced cost may not always be passed on to customers by manufacturers. They might utilise them to offset other cost pressures or absorb them as profit.

Price differences may still occur as a result of retailer price hikes, sale seasons, and promotional discounts. 

To Conclude 

GST reforms have standardised prices nationwide, keeping laptops and smartphones at 18% GST. Future changes may lower rates and fix the inverted duty structure, potentially reducing gadget prices further. While prices haven’t dropped significantly, GST has improved transparency and reduced disputes for buyers and businesses.

Poonawalla Fincorp offers Consumer Durable Loans up to ₹5 Lakh with flexible EMIs and affordable interest rates. Apply easily with clear cost breakdowns.

FAQs

Are laptop chargers and keyboards taxed with the same GST rate?

Yes, most accessories fall under the same HSN code category and are taxed with the same GST applicable rate.

Is input tax credit available on smartphones purchased for business?

Yes, if it is used for a commercial purpose, firms can claim input tax credit against GST paid.

Is there GST variation between high-end and low-end smartphones?

No, all smartphones, whether high-end or low-end, are subjected to a fixed GST of 18%.

Can a rate rationalisation under GST reduce laptop prices in the future?

Yes, if rate rationalisation occurs, lower GST rates on laptops will cause prices to fall.

Is GST levied on exchanged or refurbished smartphones?

Yes, even when purchased under an exchange offer, GST is levied on the final price after the discount.