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 imported Lithium-ion Battery There has been a demand to impose a higher Integrated Goods and Services Tax (IGST) of 28%.

What is the whole controversy? Battle of 12% vs 28%

The whole matter is about classification of mobile batteries. Currently, mobile companies rely on these batteries. 12% IGST Are paying. The companies argue that these batteries are “part of the mobile phone”, so lower rates should be applicable on them.

However, the attitude of the Customs Department is exactly 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 Maximum tax of 28% Should be applied.

Hearing in Supreme Court and notice to companies

Justice J.B. Pardiwala and Justice K.V. Vishwanathan’s bench in this case Samsung, LG, Vivo and Oppo Notice has been issued to the Indian units of. 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, 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 a smartphone. Companies can pass the burden of 16% direct increase in tax on customers.

Repairing old phones is expensive: If you get the battery of your old phone replaced, it will also become quite expensive.

Hitting the budget segment: Its biggest impact can be seen on mid-range and budget segment phones (Rs 10,000 to 25,000).

Will the relief of Budget 2026 be ruined?

Interestingly, recently introduced budget 2026 In 2017, the government had reduced custom duty on machinery making mobile parts and batteries so that phones could become cheaper. But if the department wins this legal tax battle, then the relief provided from the budget may become ineffective.