GST on iPhones: Latest Tax Rates for Apple Fans (2025)

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 rates, how it impacts pricing, and related tax benefits.

GST Rates

GST Rate on iPhones

All iPhones sold in India attract 18% GST, which is uniform across the country. iPhones fall under the HSN Code 8517, which covers all mobile handsets.

GST Summary Table for iPhones

How GST Impacts iPhone Pricing

Before GST, different states had different taxes like VAT and excise duty. After GST, all those taxes were replaced with a single 18% rate. While this made pricing more transparent and uniform, it also increased the overall tax burden on mobile phones compared to the earlier regime.

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Price Calculation Example

GST on Refurbished iPhones

Refurbished iPhones also attract 18% GST, but the tax is usually applied only on the profit margin if the phone hasn’t undergone major changes. This is beneficial to buyers, as they end up paying less tax compared to new phones.

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

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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:

1. The iPhone is used strictly for business purposes.
2. A GST-compliant invoice must be issued by the seller.
3. The seller must have deposited the tax to the government.
4. The phone must have been received by the buyer.
5. ITC is not allowed if the phone is used for personal or mixed use.

GST on iPhone Accessories

While iPhones are taxed at 18%, their accessories may be taxed at different GST rates, depending on the item.

GST Rates on Common Accessories

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• Analyze sales reports by brand, model, customer, or salesperson