GST Revision: Impact on Tech Gadgets and Automobiles

Report by: Syed Taskin Ahmed

The government is considering changes to the Goods and Services Tax (GST) structure, which could have a direct impact on the technology and automobile sectors. This move may come as welcome relief for consumers.

At present, smartphones, laptops, and other electronic products fall under the 18% GST slab. The government is reportedly exploring the possibility of reducing this rate to 12%. If implemented, the prices of mid-range smartphones and premium laptops could drop significantly. For instance, on a smartphone worth ₹20,000, a consumer could save nearly ₹1,200. Experts believe such a move would boost demand and sales in India’s electronics market.

On the other hand, the automobile sector is also expected to see a notable impact. Currently, cars and bikes attract 28% GST along with additional cess, which makes their prices considerably high. However, Electric Vehicles (EVs) are already taxed at just 5% GST. Now, there are discussions to further reduce GST on EV batteries and charging infrastructure. If this happens, owning and maintaining an EV will become more affordable, giving a push to India’s EV adoption drive.

Industry experts say these revisions would benefit both consumers and manufacturers. While tech products would become more affordable for the masses, cheaper EVs could accelerate India’s green mobility mission, bringing the country closer to its sustainable transportation goals.