GST on iPhones in India: What You Should Know
Buying an iPhone in India means understanding how taxes affect the final price—especially the Goods and Services Tax (GST). This blog will walk you through everything you need to know about GST on iPhones, including rates, how it impacts pricing, and related tax benefits.
BOOK A FREE DEMO
GST Rate on iPhones
All iPhones sold in India attract 18% GST, which is uniform across the country. iPhones fall under the HSN Code 8517, which covers all mobile handsets.
GST Summary Table for iPhones
| HSN Code | Product Description | GST Rate |
|---|---|---|
| 8517 | iPhones and mobile phones | 18% |
How GST Impacts iPhone Pricing
Before GST, different states had different taxes like VAT and excise duty. After GST, all those taxes were replaced with a single 18% rate. While this made pricing more transparent and uniform, it also increased the overall tax burden on mobile phones compared to the earlier regime.
Get a Free Trial – Best Accounting Software For Small Business
Price Calculation Example
| Particulars | Pre-GST (₹) | Post-GST (₹) |
|---|---|---|
| Manufacturing Cost | 70,000 | 70,000 |
| Customs Duty | 15,400 (22%) | 10,500 (15%) |
| Value for Tax Calculation | 85,400 | 80,500 |
| VAT/GST | 11,956 (14%) | 14,490 (18%) |
| Sale Price to Retailer | 97,356 | 94,990 |
| Retailer Markup | 2,000 | 2,000 |
| Final Price to Customer | 99,636 | 97,350 |
Note: Values are for illustrative purposes only.
GST on Refurbished iPhones
Refurbished iPhones also attract 18% GST, but the tax is usually applied only on the profit margin if the phone hasn’t undergone major changes. This is beneficial to buyers, as they end up paying less tax compared to new phones.
Example:
- Retailer Purchase Price: ₹50,000
- Selling Price: ₹70,000
- Profit Margin: ₹20,000
- GST (18% on ₹20,000): ₹3,600
- Final Price to Customer: ₹73,600
Explore a Free Demo of – Best Inventory Management Software For Small Business
Input Tax Credit (ITC) on iPhones
If a business buys an iPhone for official use, it may be eligible to claim Input Tax Credit (ITC). This allows the business to reduce its overall tax liability by the GST amount paid on the purchase.
Conditions for Claiming ITC:
- The iPhone is used strictly for business purposes.
- A GST-compliant invoice must be issued by the seller.
- The seller must have deposited the tax to the government.
- The phone must have been received by the buyer.
- ITC is not allowed if the phone is used for personal or mixed use.
GST on iPhone Accessories
While iPhones are taxed at 18%, their accessories may be taxed at different GST rates, depending on the item.
GST Rates on Common Accessories
| Accessory | HSN Code | GST Rate |
|---|---|---|
| Chargers | 8504 | 28% |
| Earphones/Headphones | 8518 | 18% |
| Screen Protectors | 3919/7007 | 18% |
| Mobile Cases | 3926 | 18% |
Get a Free Demo of – BillingSoftware for Mobile Stores
Unique Features of BUSY Accounting Software For the iPhones Industry
- Track IMEI numbers during purchase, sale, and returns for complete device traceability.
- Manage serial numbers for accessories and electronic items with warranty tracking.
- Get real-time inventory updates for mobile phones, parts, and accessories.
- Handle multiple brands and models with easy categorization and filtering.
- Manage repair jobs with detailed job cards, service status, and cost tracking.
- Track stock across multiple locations like showrooms, warehouses, and service centres.
- Analyze sales reports by brand, model, customer, or salesperson
I am a Chartered Accountant with more than five years of experience in the accounting field. My areas of expertise include GST, income tax, and audits. I am passionate about sharing knowledge through blogs and articles, as I believe that learning is a lifelong journey. My goal is to provide valuable insights and simplify financial matters for individuals and business owners alike.
Frequently Asked Questions (FAQs)
- What is the GST rate on iPhones in India?The GST rate is 18% on all iPhones sold in India.
- Can I claim Input Tax Credit on an iPhone?Yes, if the iPhone is purchased for business purposes and all GST rules are followed, ITC can be claimed.
- Are refurbished iPhones taxed the same as new ones?Refurbished iPhones are taxed at 18%, but usually only on the seller’s profit margin.
- Do iPhone accessories have the same GST rate as the phone itself?Not always. While many accessories are taxed at 18%, items like chargers can attract up to 28% GST.
- Has the GST rate on iPhones changed recently?The GST rate on iPhones was increased from 12% to 18% in 2020 and has remained the same since then.
