Why did the price of mobile recharges not decrease after the GST rate reduction?
The price of mobile recharge did not decrease because, under the 2025 GST reform, the Goods and Services Tax (GST) rate on mobile phones remained unchanged at 18%. While other electronic items and essential services saw a reduction to a lower GST slab, mobile phones were classified as a standard, non-essential good that remains a significant revenue source for the government. The government prioritized revenue generation and did not deem a rate cut necessary for this high-demand sector.
Why the Rate Didn't Change
- Classification as a Non-Essential Good:The GST Council kept mobile phones in the standard 18% slab, not moving them to the 5% rate reserved for essentials, despite industry calls to do so.
- Revenue Considerations:
- Mobile phones are a substantial source of tax revenue, and the government maintained the 18% rate to ensure fiscal stability.
- Other Sectors Benefited:
- The GST reform focused on providing price reductions for essential items and household goods, but mobile phones were not part of this "essential" classification.
- What You Can Do
- Look for Other Discounts:Instead of GST-driven price cuts, look for discounts and promotional offers from mobile operators and e-commerce platforms during festive sales.