The request has been made by the India Cellular and Electronics Association (ICEA)<\/strong>, which represents major domestic and global smartphone manufacturers.<\/p>\n\n\n\n ICEA has written to Finance Minister Nirmala Sitharaman and Electronics and IT Minister Ashwini Vaishnaw, asking the government to consider the proposal at the upcoming GST Council meeting.<\/p>\n\n\n\n The association is seeking the same GST rationalisation for mobile phone components<\/strong>, arguing that reducing the tax burden on both finished devices and components could help revive demand and support the broader electronics manufacturing ecosystem.<\/p>\n\n\n\n One of the industry’s main concerns is the sharp increase in memory component prices.<\/p>\n\n\n\n According to ICEA, prices of DRAM and NAND flash memory have increased roughly fourfold since September 2025<\/strong>, partly because AI data centres are absorbing a growing share of global memory capacity.<\/p>\n\n\n\n The increase has contributed to entry-level smartphone prices rising by around 35% to 45% over the past year<\/strong>, according to the industry body.<\/p>\n\n\n\n The impact has been particularly visible in the affordable segment. ICEA says the availability of smartphones priced below \u20b910,000 has fallen to less than 5%<\/strong> of the market.<\/p>\n\n\n\n India has rapidly expanded its mobile phone manufacturing and export capabilities. ICEA says domestic mobile phone production increased from \u20b918,900 crore in FY2014-15 to \u20b96.27 lakh crore in FY2025-26<\/strong>.<\/p>\n\n\n\n Exports also climbed from \u20b91,566 crore to \u20b92.60 lakh crore<\/strong> during the same period.<\/p>\n\n\n\n However, domestic consumption has not grown at the same pace. Longer replacement cycles and higher prices are putting pressure on demand, particularly among first-time smartphone buyers and lower-income households.<\/p>\n\n\n\n ICEA argues that reducing GST to 5% could lower the upfront cost of smartphones, encourage consumers to replace older devices and accelerate the shift from feature phones and 2G services to smartphones.<\/p>\n\n\n\n The association also believes a lower tax rate could reduce the price advantage enjoyed by informal and grey-market sellers, potentially bringing more purchases into authorised channels.<\/p>\n\n\n\n Mobile phones were initially placed in the 12% GST slab in 2017<\/strong>, before the rate was increased to 18% in April 2020. ICEA now wants the rate brought down to 5%.<\/p>\n\n\n\n The proposed reduction is a demand from the industry and has not yet been approved by the government or GST Council<\/strong>.<\/p>\n\n\n\n Mobile phone manufacturers are seeking a reduction in GST from 18% to 5%<\/strong>, citing rising memory prices, 35\u201345% increases in entry-level handset prices and weakening domestic demand. ICEA says lower GST could make smartphones more affordable, revive replacement demand and support India’s growing electronics manufacturing ecosystem.<\/p>\n","protected":false},"excerpt":{"rendered":" India’s mobile phone industry is pushing the government to reduce the GST on smartphones from 18% to 5%, arguing that rising handset prices and weaker domestic demand are making phones increasingly unaffordable, particularly for budget-conscious consumers. The request has been made by the India Cellular and Electronics Association (ICEA), which represents major domestic and global […]<\/p>\n","protected":false},"author":30,"featured_media":1313902,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[10568,5732],"class_list":["post-1313893","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-gst-cut","tag-phones"],"acf":[],"yoast_head":"\n![\"Phone](\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/09\/images-34.jpeg\")
<\/figure>\n\n\n\nIndustry Seeks Relief Ahead of GST Council Meeting<\/h2>\n\n\n\n
Smartphone Prices Rise 35\u201345%<\/h2>\n\n\n\n
Demand Is Not Keeping Pace With Manufacturing<\/h2>\n\n\n\n
Industry Says Lower GST Could Boost Sales<\/h2>\n\n\n\n
Summary<\/h3>\n\n\n\n