GST on Mobile Phones 2026: 18% Rate, HSN 8517 & Accessories

In India, GST on mobile phones is 18%, charged under HSN code 8517 — and this applies to both smartphones and basic feature phones. Most mobile accessories such as chargers, cases, earphones and power banks are also taxed at 18%. This rate has held since 1 April 2020 and did not change in the GST rate cuts of 22 September 2025: heading 8517 is in the 18% schedule (Schedule II) of Notification 9/2025-Central Tax (Rate). If you run a mobile or electronics shop, this guide covers the rates, the HSN codes, input tax credit, and how to bill correctly.

GST rate on mobile phones and accessories (2026)

Rates and HSN classification can change with GST Council notifications — always confirm the current rate for a specific SKU before you bill. See our guide to finding the right HSN code.

Selling used phones? Those can use the margin scheme: see GST on second-hand mobile phones. Repairs are a service: see GST on mobile repair services.

Why mobile phones are taxed at 18%

When GST launched in July 2017, mobile phones were placed in the 12% slab. From 1 April 2020, the GST Council raised the rate on mobile phones and specified parts to 18% to correct an inverted duty structure — where inputs were taxed higher than the finished phone, leaving manufacturers with stuck credit. That change was made by Notification 3/2020-Central Tax (Rate). The rate has stayed at 18% since, and the September 2025 rate changes (Notification 9/2025-Central Tax (Rate), in force from 22 September 2025) kept mobile phones at 18%. For the rate entry and related items, see the mobile phones GST rate and HSN page.

Accessories: mostly 18%, with a few exceptions

The large majority of mobile accessories a shop sells — chargers, cables, earphones, power banks, cases, screen guards and memory cards — fall in the 18% slab. A few electronic items outside the phone category can sit in higher slabs, so do not assume every product on the shelf is 18%. When in doubt, check the HSN and the latest rate rather than copying an old bill.

Input tax credit (ITC) for mobile dealers

If you are GST-registered, the 18% GST you pay to your distributor on stock is input tax credit you can set off against the GST you collect on sales. To claim it cleanly:

• Buy only against a proper GST tax invoice showing the supplier's GSTIN.
• Make sure the purchase appears in your GSTR-2B (supplier has filed and reported it).
• Keep purchase and sales records reconciled so credit is not lost or mismatched.

Good billing software that tracks GST on every purchase and sale makes this reconciliation far less painful at return-filing time.

How to bill mobile phones correctly

A compliant sale invoice for a phone or accessory should carry your shop's GSTIN, the item description, the HSN code, taxable value, and the CGST + SGST (or IGST for inter-state) split at 18%. For an in-state sale that is 9% CGST + 9% SGST. Read our GST invoice format guide for the full field list, and if your turnover crosses the threshold, see when e-invoicing becomes mandatory.

Selling phones with exchange or EMI

Two common shop scenarios trip people up:

• Exchange offers: the usual treatment is to charge GST on the new phone's full price and treat the old phone as part payment, not a discount. Confirm with your CA.
• EMI / finance: GST applies to the phone's sale value at the point of sale; interest charged by the financier is a separate matter between the customer and the lender.

How RichPOS helps mobile & electronics shops

RichPOS for mobile shops stores HSN codes and GST rates against each item, so a phone rings up at 18% automatically, prints a compliant GST invoice, and keeps purchase and sales data ready for your returns. It also handles repair job tracking, so a shop that sells phones and also repairs them can run both on one system. Compare it in our repair-shop billing software guide or see pricing.

Related guides: How to Start a Mobile Shop Business in India (2026).

Bottom line

Mobile phones and most accessories are taxed at 18% GST in India in 2026, phones under HSN 8517. Register the correct HSN and rate against each item, bill on a proper GST invoice, and reconcile purchases so you keep your input tax credit. See RichPOS for mobile shops or check pricing.

Sources: Notification 3/2020-Central Tax (Rate) (rate revised to 18% from 1 April 2020); Notification 9/2025-Central Tax (Rate), dated 17 September 2025, Schedule II (CBIC tax information portal). Rates checked against CBIC notifications on 22 October 2026. Rates and HSN can change by notification — confirm the current rate before billing.