Smartphone Price Hike: Now Samsung, Vivo and Oppo phones can become expensive? Custom department reached Supreme Court

News India Live, Digital Desk: If you are planning to buy a new smartphone, then this news is important for you. In the coming days, there may be a rise in the prices of mobile phones of big brands like Samsung, Vivo and Oppo. The reason for this is not a chip shortage, but a legal battle. The Supreme Court on Friday (April 10, 2026) has sought response from mobile companies on the petition of the Customs Department, in which a higher Integrated Goods and Services Tax (IGST) of 28% has been demanded on imported Lithium-ion Batteries. What is the whole controversy? The battle of 12% vs 28% is all about the classification of mobile batteries. Currently, mobile companies are paying 12% IGST on these batteries. The companies argue that these batteries are “part of the mobile phone”, hence lower rates should be applicable on them. However, the stance of the Customs Department is just the opposite. The department says that lithium-ion batteries have their own independent commercial identity and their use is not limited to mobiles only. According to the department, these should not be considered a part of the mobile but should be considered as a separate product, on which a maximum tax of 28% should be imposed. Hearing in the Supreme Court and notice to the companies Justice J.B. Pardiwala and Justice K.V. Vishwanathan’s bench has issued notices to the Indian units of Samsung, LG, Vivo and Oppo in this matter. The Customs Department has challenged the decision of the Tribunal (CESTAT) of the year 2025, in which the 12% tax rate was upheld. The department alleges that companies are misclassifying products to pay less tax. What will be the impact on the common man’s pocket? If the Supreme Court’s decision comes in favor of the Customs Department, then there will be a huge increase in the input cost (manufacturing cost) of mobile companies: Increase in phone prices: Battery is an expensive part of the smartphone. Companies can pass the burden of direct increase in tax of 16% on the customers. Repairing of old phones is expensive: If you get the battery of your old phone changed, it will also become very expensive. Hit on the budget segment: Its impact can be seen the most on mid-range and budget segment phones (Rs 10,000 to 25,000). Will the relief of Budget 2026 be ruined? Interesting thing. This is that in the recently presented Budget 2026, the government had reduced the custom duty on mobile parts and battery making machinery so that phones can become cheaper. But if the department wins this legal tax battle, then the relief provided from the budget may become ineffective.