Quick Summary
India's smartphone manufacturers are lobbying the government to slash the GST on mobile phones from the current 18% to 5%, arguing that handsets have become essential digital infrastructure rather than aspirational products. The India Cellular Electronics Association (ICEA), representing global brands such as Apple, Xiaomi, Oppo, Vivo, Motorola and Indian firms like Lava, has formally urged the Finance Ministry to treat mobile phones and their components as essential goods. ICEA says the reduc
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FAQ :
The current GST rate on mobile phones in India is 18%.
Smartphone manufacturers are requesting a reduction in GST to 5%.
The industry believes a GST cut would make smartphones more affordable, boost demand, lower manufacturing costs, and enhance India's competitiveness in manufacturing.
Yes, the India Cellular & Electronics Association (ICEA) argues that mobile phones have become essential for education, healthcare, governance, and financial inclusion.
The smartphone market has stagnated at around 150 million units annually for the past four years, though revenue growth is strong due to premiumisation.
A lower GST is expected to sustain domestic manufacturing and anchor the value chain, potentially leading to increased domestic demand and exports.
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