GST 2.0 Begins: Why Smartphones Above Rs 50,000 Won’t Get Cheaper, But TVs and ACs Will

India’s long-awaited GST 2.0 reform officially rolled out on 22 September 2025, reshaping the country’s indirect tax landscape with a simplified two-slab structure. While many household electronics are set to get cheaper, smartphone buyers—especially those eyeing premium models from Apple, Samsung, and Xiaomi—will be disappointed.

The new system is designed to ease compliance and streamline the tax burden on both consumers and businesses. Under this restructured framework, several commonly used electronics such as televisions and air conditioners have seen GST rates slashed. The government cited their growing role as household essentials, particularly in the face of lifestyle changes and climate-related needs, as the reason for the reduction.

Smartphones and Laptops Left Out

Despite expectations, the government has decided to keep the GST on smartphones unchanged at 18%, leaving their prices unaffected. This means popular premium handsets like the Apple iPhone 17 Pro Max, Samsung Galaxy S25 Ultra, and high-end Xiaomi flagships priced above ₹50,000 will not see any tax-related price cut.

Laptops too remain in the same tax bracket, sparking debate about whether these gadgets—integral to modern work and education—should have been reclassified as essential goods. For now, buyers will need to look to seasonal discounts and exchange offers for savings.

Festive Season Relief for Buyers

The timing of GST 2.0 coincides with the beginning of India’s festive shopping season. E-commerce giants are stepping up with aggressive promotions to attract consumers. Amazon’s Great Indian Festival (AGIF) 2025, starting 23 September, is expected to feature blockbuster deals on smartphones, tablets, wearables, and accessories from brands including Samsung, Apple, OnePlus, iQOO, Xiaomi, realme, and Lava. Prime members already have 24-hour early access.

Similarly, Flipkart’s Big Billion Days sale is bringing heavy discounts across electronics and lifestyle categories. Customers can expect slashed prices on Apple AirPods Pro (2nd Gen), Samsung Galaxy Book 4 laptops, iPads, boAt soundbars, and Philips grooming products, among others.

Auto Sector Rejoices

If smartphones missed the cut, the automobile industry has emerged as the biggest winner of GST 2.0. The government has reduced GST on small cars from 28% to 18%, immediately prompting leading manufacturers to announce price reductions. This move is expected to make car ownership more accessible for Indian buyers and boost auto sales ahead of the festive season.

A Mixed Bag for Consumers

The government’s latest reform is being hailed as a bold step toward simplifying GST, but its selective approach has stirred mixed reactions. While electronics like TVs and ACs are now cheaper, smartphones and laptops—often considered essential for modern connectivity and work—remain at the same price point.

For consumers, the immediate relief lies not in the tax reform itself but in festive sales, which are set to offer attractive deals starting this week. Meanwhile, the auto sector’s gain reflects the government’s push to stimulate demand in a key industry.