New Delhi: The Goods and Services Tax (GST) Council, in its 56th meeting, unveiled a revamped tax structure introducing simplified slabs of 5 percent and 18 percent, along with a 40 percent category for luxury and sin goods. The changes, effective from September 22, aim to boost consumption ahead of the festive season. However, for smartphone buyers, the much-anticipated tax cut did not materialize—smartphones will continue to attract 18 percent GST, leaving prices unchanged.

Industry insiders had expected this outcome, pointing out that smartphones generate substantial revenue for the government. Though many argue that smartphones have become a necessity and deserve inclusion in the 5 percent slab, the GST Council chose to leave the rate untouched. Finance Minister Nirmala Sitharaman clarified that the focus of this reform was easing the tax burden on essential and consumer goods rather than mobile phones.

While smartphones remain unaffected, other consumer electronics and household appliances are set to get cheaper. Large-screen televisions (above 32 inches), refrigerators, washing machines, and air conditioners have all moved from the 28 percent slab to 18 percent, bringing prices down by ₹1,500–₹2,500 depending on the model. Smaller televisions (32 inches and below) now fall under the 5 percent slab, making them even more affordable. Dishwashing machines also benefit from a similar tax cut, likely boosting demand during the festive sales period.

The GST Council has further reduced taxes on everyday essentials such as hair oil, toothpaste, and kitchenware to 5 percent, while completely exempting life-saving drugs and individual insurance policies from GST. These moves underline a consumer-friendly push, providing relief to households ahead of Diwali and Navratri.

Despite these sweeping reforms, smartphone users will have to wait longer for any reduction in prices as the 18 percent slab remains firmly in place.