New GST on iPhones in India: What You Should Know
- The GST on iPhone in India is generally 18% under the applicable GST classification for mobile phones.
- The applicable iPhone GST rate depends on the product classification under GST and relevant HSN provisions.
- Refurbished iPhones may have different GST treatment depending on the seller, transaction type, and applicable GST provisions.
- Businesses purchasing iPhones for eligible business use may claim Input Tax Credit (ITC) subject to GST conditions and restrictions.
- iPhone accessories may attract GST based on their specific HSN classification and applicable GST rate.
Buying an iPhone in India means understanding how taxes affect the final price, especially the Goods and Services Tax (GST). This blog will walk you through everything you need to know about GST on iPhones, including gst rates, how it impacts pricing, and related tax benefits.
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New GST Rate on iPhone and Accessories in India
Under the Next Gen GST Reforms, effective 22nd September 2025, the GST structure applicable to consumer electronics was revised for certain product categories. GST rates depend on the applicable HSN classification of each product.
The iphone gst rate remains 18% under the applicable GST classification. iPhones continue to attract 18% GST, while iPhone accessories may attract GST based on their specific HSN classification and applicable GST provisions.
Below is the updated GST structure along with the earlier applicable rates for reference. No compensation cess applies to iPhones or their accessories.
Iphone GST Rate Structure
| Product Description | GST Rate (After 22nd Sept 2025) | GST Rate (Before 22nd Sept 2025) | Status |
|---|---|---|---|
| Apple iPhone (All models) | 18% | 18% | Unchanged |
| Power Adapters / MagSafe Chargers | 18% | Based on applicable classification | Applicable GST rate revised for certain categories |
| AirPods / EarPods | 18% | 18% | Standard |
| USB C / Lightning Cables | 18% | 18% | Standard |
| Power Banks | 18% | Based on applicable classification | Applicable GST rate revised for certain categories |
| Leather iPhone Cases | Based on applicable HSN classification | Based on applicable HSN classification | Depends on product category |
Product Description
GST Rate (After 22nd Sept 2025)
GST Rate (Before 22nd Sept 2025)
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GST Rate (After 22nd Sept 2025)
GST Rate (Before 22nd Sept 2025)
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GST Rate (After 22nd Sept 2025)
GST Rate (Before 22nd Sept 2025)
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GST Rate (After 22nd Sept 2025)
GST Rate (Before 22nd Sept 2025)
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GST Rate (After 22nd Sept 2025)
GST Rate (Before 22nd Sept 2025)
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GST Rate (After 22nd Sept 2025)
GST Rate (Before 22nd Sept 2025)
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Customs Duty Impact on iPhone Pricing
Apart from GST, imported iPhones may also be subject to applicable Basic Customs Duty and other import-related levies as per customs regulations.
Tax Structure Based on Origin
Imported iPhones
- Applicable Basic Customs Duty
- 18% IGST calculated on the assessable value plus applicable customs duties and charges as per customs provisions.
Locally Manufactured iPhones
- 18% GST applies on supply.
- For intra-state sales, GST is generally divided into 9% CGST and 9% SGST.
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Example Price Calculation
If an imported iPhone has an assessable value of ₹80,000:
Basic Customs Duty at 15% = ₹12,000
Taxable value for GST = ₹92,000
GST at 18% = ₹16,560
Total tax impact = ₹28,560
Final cost before retailer margin = ₹1,08,560
For a locally manufactured iPhone priced at ₹80,000:
GST at 18% = ₹14,400
Final invoice value = ₹94,400
GST on Refurbished iPhones
Refurbished iPhones may attract 18% GST based on the applicable GST provisions. Eligible sellers dealing in second-hand goods may calculate GST on the margin amount under the applicable margin scheme, subject to meeting the required conditions.
Example:
- Retailer Purchase Price: ₹50,000
Selling Price: ₹70,000
Profit Margin: ₹20,000 - GST (18% on ₹20,000): ₹3,600
- Final Price to Customer: ₹73,600
This margin-based calculation applies only where the seller is eligible to use the applicable GST margin scheme.
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Input Tax Credit (ITC) on iPhones
If a business buys an iPhone for official use, it may be eligible to claim Input Tax Credit (ITC) . This allows the business to reduce its overall tax liability by the GST amount paid on the purchase.
Conditions for Claiming ITC:
- The iPhone is used strictly for business purposes.
- A GST-compliant invoice must be issued by the seller.
- The seller must have deposited the tax to the government.
- The phone must have been received by the buyer.
- ITC is not allowed if the phone is used for personal or mixed use.
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Unique Features of BUSY Accounting Software For the iPhones Industry
- Track IMEI numbers during purchase, sale, and returns for complete device traceability.
- Manage serial numbers for accessories and electronic items with warranty tracking.
- Get real-time inventory updates for mobile phones, parts, and accessories.
- Handle multiple brands and models with easy categorization and filtering.
- Manage repair jobs with detailed job cards, service status, and cost tracking.
- Track stock across multiple locations like showrooms, warehouses, and service centres.
- Analyze sales reports by brand, model, customer, or salesperson
