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 April 2020 and remains 18% in 2026. 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)
| Item | HSN code | GST rate |
|---|---|---|
| Mobile phones (smart & feature) | 8517 | 18% |
| Chargers / adapters | 8504 | 18% |
| Earphones & headphones | 8518 | 18% |
| Power banks | 8507 | 18% |
| Mobile cases & covers | 3926 / 4202 | 18% |
| Tempered glass / screen guard | 7007 / 3919 | 18% |
| USB / data cables | 8544 | 18% |
| Memory cards | 8523 | 18% |
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.
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. Since then the rate has stayed at 18%, and that is what applies in 2026.
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: GST is charged on the full sale price of the new phone, not the reduced amount after the old-phone trade-in. The trade-in is a separate transaction.
- 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 is built for exactly this kind of retail — it 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.
FAQ
What is the GST rate on mobile phones in India in 2026?
Mobile phones are taxed at 18% GST under HSN code 8517. This rate has applied since 1 April 2020 and remains 18% in 2026 for both smartphones and feature phones.
What is the HSN code for mobile phones?
The HSN code for mobile phones is 8517. Accessories use their own codes — for example 8504 for chargers, 8507 for power banks and 8544 for cables — but most are also taxed at 18%.
Is GST on mobile accessories the same as on phones?
Mostly yes. Common accessories like chargers, earphones, power banks, cases and cables are taxed at 18%, the same slab as phones. A few electronic items can differ, so confirm the HSN and rate for the specific product.
Can a mobile shop claim input tax credit?
Yes. A GST-registered dealer can claim the 18% GST paid on stock purchases as input tax credit and set it off against GST collected on sales, provided the purchase is on a valid tax invoice and appears in GSTR-2B.
How is GST charged on a phone bought with an exchange offer?
GST is charged on the full sale price of the new phone, not on the discounted amount after the old-phone trade-in. The exchange value of the old device is treated separately.
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 how RichPOS works or check pricing to bill your mobile shop the right way.
Sources: GST Council rate notifications (rate revised to 18% w.e.f. 1 April 2020), CBIC HSN classification, 2026. Rates and HSN can change by notification — confirm the current rate before billing.
