New Delhi, Aug. 28 -- The Goods and Services Tax (GST) Council may consider a cut in the 18% GST rate on mobile phones as it seeks to revive slowing handset demand and prevent the tax from becoming a drag on India's electronics manufacturing ambitions, two people aware of the matter said.

The proposal is expected to be discussed at the Council's meeting likely to be held next month, although the agenda has not been finalized, the people said on condition of anonymity.

The move comes as smartphone shipments in India fell 10-11% year-on-year in the April-June quarter, the steepest decline in a June quarter in six years, according to Counterpoint Research and IDC. Mobile-phone production stood at Rs.6.27 trillion in FY26, nearly half of In...