Understanding GST on Mobile Phones in India

Goods and Services Tax (GST) is a unified tax system in India that has streamlined the taxation of goods and services, including mobile phones and their accessories. This article provides a comprehensive overview of the GST rates applicable to mobile phones, the corresponding Harmonized System of Nomenclature (HSN) codes, and answers to frequently asked questions.

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    GST Rates

    GST Rate on Mobile Phones

    As of April 2025, mobile phones in India are subject to an 18% GST rate. This rate applies uniformly across all types of mobile phones, including smartphones and feature phones.

    HSN Code for Mobile Phones

    The HSN code is an international system used to classify products for taxation purposes. For mobile phones, the relevant HSN code is 8517.

    GST Rates on Mobile Accessories

    Different accessories associated with mobile phones attract varying GST rates. Below is a table summarizing the HSN codes and corresponding GST rates for common mobile accessories:

    Accessory HSN Code GST Rate
    Mobile Phone Chargers 8504 18%
    Lithium-ion Batteries 8507 18%
    Power Banks 8507 18%
    Earphones and Headphones 8518 18%
    Memory Cards 8523 18%
    Tempered Glass Screen Protectors 7007 18%
    Plastic Screen Protectors 3919 18%
    Leather Phone Cases & Back Covers 4202 18%

    Impact of GST on Mobile Phone Prices

    The implementation of GST brought about a uniform tax rate for mobile phones across India. Prior to GST, different states had varying tax rates, leading to price discrepancies. With the standardized 18% GST rate, mobile phone prices have become consistent nationwide. However, this uniform rate did lead to a slight increase in prices compared to the pre-GST era, where the average tax rate was around 12%.

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    Input Tax Credit (ITC) on Mobile Phones

    Businesses purchasing mobile phones for official use can claim Input Tax Credit (ITC) on the GST paid, provided the following conditions are met:

    • The mobile phone is used for business purposes.
    • A valid tax invoice is available, containing details such as the supplier’s GSTIN, HSN code, and GST amount.
    • The supplier has filed their GST returns and paid the tax to the government.

    GST on Imported Mobile Phones

    Imported mobile phones are subject to an 18% GST rate, in addition to customs duties and other applicable charges. This makes imported phones relatively more expensive than domestically produced ones.

    Unique Features of BUSY Accounting Software For the Mobile Phones Industry

    • Track IMEI numbers during purchase, sale, and returns for complete device traceability.
    • Manage mobile phone and accessories warranty tracking easily.
    • Get real-time inventory updates for mobile phones, parts, and accessories.
    • Handle multiple brands and models with easy categorization and filtering.
    • Enable barcode/QR code scanning for fast and accurate billing and stock entries.
    • Manage repair jobs with detailed job cards, service status, and cost tracking.
    • Track stock across multiple locations like showrooms, warehouses, and service centers.
    • Analyze sales reports by brand, model, customer, or salesperson.

    Frequently Asked Questions (FAQs)

    • What is the current GST rate on mobile phones in India?
      The GST rate on mobile phones is 18%.
    • Are all mobile accessories taxed at the same rate?
      No, while many accessories like chargers, batteries, and earphones are taxed at 18%, some items may have different rates. It’s essential to check the specific HSN code for accurate tax information.
    • Can businesses claim ITC on mobile phones purchased for employees?
      Yes, if the mobile phones are purchased for business purposes and meet the necessary conditions, ITC can be claimed.
    • How does GST affect the price of imported mobile phones?
      Imported mobile phones attract an 18% GST in addition to customs duties, making them more expensive than locally manufactured phones.
    • Has the GST rate on mobile phones changed recently?
      As of April 2025, the GST rate on mobile phones remains at 18%. It’s advisable to stay updated with official announcements for any future changes.
      Understanding the GST implications on mobile phones and their accessories is crucial for both consumers and businesses to ensure compliance and make informed purchasing decisions.
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