There is no need for me to elaborate on the importance of mobile phones in our lives, everyone is well aware of how essential is a mobile phone for us. India has the second leading mobile market in the world. Variety of mobile phones, smartphones, and mobile accessories are sold by micro, small and medium enterprises (MSME) in India. Coming straight to the point, today’s write up is about GST rates on mobile phones, smartphones, chargers, and mobile accessories along with HSN code.
Latest Update
14th December 2021
- Chennai India Cellular & Electronics Association (ICEA) has demanded to reduce the 12% GST rate on mobile and 5% on its parts and components.
18th November 2021
- The ICEA has requested for GST rate reduction on mobiles from various chief ministers via letter. Currently, an 18% GST rate is applicable on mobile handsets. The association wants a 12% tax rate on mobile handsets and 5% on mobile accessories. The ICEA said in a statement “This increase in the GST rate has a trickle-down effect leading to the rise in prices for the consumer, which, in turn, is decreasing the demand for mobile phones,”.
2nd February 2021
- In budget 2021 mobile phone and sub parts will be more expensive in India with new custom duty
Free Download Gen GST Return Filing Software
Applied GST Rates on Mobile Phone
Before the debut of Goods and Sales Tax (GST) in India, Value Added Tax (VAT) was imposed on the purchase of all the entities including mobile phones. VAT rates on mobile phones were different in different states. As per GST rules, the tax rate on mobile phones is the same across the nation. There are possibilities of a drop in the prices of mobile phones as the GST rates are now reduced. GST rates for mobile phones is 18% and the HSN code is 8517.
Read also: GST Impact on Mobile Phone Manufacturers in India
When SGST & CGST or IGST is Applied?
As mentioned, 18% GST has to be paid by the customer on the purchase of mobile phones. If the customer is buying a phone from the dealer within state premises then that 18% will equally be divided into SGST (State GST) and CGST (Central GST). On the contrary, if the customer gets the phone from the dealer from another state, then 18% IGST will be applicable. This clearly means the import of mobile phones (from one state to another) will have to face 18% IGST.
Significance of HSN Code under GST for Mobile Phones and Accessories
GST rates on mobile phones and accessories for mobile phones are determined under HSN Chapter 85. HSN Chapter 85 has different GST rate slabs according to which GST rates are applicable on the purchase of mobile phones. Therefore it is mandatory to mark correct HSN code to prevent wrong invoicing and extra charges.
| Product Name | HSN Code | GST Rate |
|---|---|---|
| Mobile Phones | 8517 | 18% |
| Charger | 8504 | 18% |
| Earphone | 8518 | 18% |
| Lithium-ion Batteries | 8506 | 18% |
| Power Bank | 8504 | 18% |
| Memory Card | 8523 | 18% |
| USB Cable | 8504 | 18% |
| Speakers | 8518 | 18% |
| Headphones | 8518 | 18% |
| Plastic Screen Protector | 3919 | 18% |
| Tempered Glass Screen Protector | 3923 | 18% |
