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GST

GST on Electronics – Rates, Impact & HSN Codes

GST affects electronics with varying tax rates and input credits. It plays a significant role in pricing and compliance for businesses and consumers in the electronics sector.

GST on Electronics

The Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services across India. Electronics fall under the purview of goods and service tax, and the applicable tax rates vary depending on the type of electronic product.

Impact of GST on the Electronics Industry

The implementation of GST has had a mixed impact on the electronics industry. On the one hand, it has simplified the tax structure and reduced compliance costs for businesses. However, the higher GST rates on certain electronic items have made them more expensive for consumers, which has dampened demand.

Impact of GST on Consumer Electronics

The impact of GST on consumer electronics has been particularly significant. The GST rate on mobile phones, for example, was increased from 15% to 18% in 2019, which led to a decline in sales. Similarly, the GST rate on televisions was increased from 18% to 28%, which also had a negative impact on demand.

GST Rates on Electronics

Here’s a summary of the GST rates applicable to different types of electronic products:

  • 5% GST: Solar panels, batteries for solar panels, and other related products.
  • 12% GST: Mobile phones (new and old), televisions up to 27 inches, refrigerators, washing machines, and other home appliances.
  • 18% GST: Transmission, distribution, and associated products.
  • 28% GST: Primary batteries and primary cells, electric accumulators, vacuum cleaners, and other electronic items not covered under other rates.
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GST on Mobile Phones

The GST rate on mobile phones was increased from 15% to 18% in 2019. This has made mobile phones more expensive for consumers, but it has also led to an increase in the demand for refurbished and second-hand phones.

gst for electronic items
gst for electronic items

HSN Code for Electrical Items in GST

The Harmonized System Nomenclature (HSN) code is a standardized international system for classifying goods traded across borders. The HSN codes for electrical items in GST vary depending on the specific product. For example, the HSN code for mobile phones is 851712, while the HSN code for televisions is 852810.

FAQs on GST on Electronics

Is GST applicable to electronic products and devices?

Yes, GST is applicable to all electronic products and devices, including mobile phones, laptops, televisions, refrigerators, washing machines, and other home appliances.

What is the GST rate on electronic items in India?

The GST rate on electronic items in India is different for different products. The following table summarizes the GST rates for various types of electronic goods:

  • Mobile phones (new and old) - 18%
  • Televisions up to 27 inches - 12%
  • Refrigerators, washing machines, and other home appliances - 12%
  • Solar panels, batteries for solar panels, and other related products - 5%
  • Transmission, distribution, and associated products - 18%
  • Primary batteries and primary cells, electric accumulators, vacuum cleaners, and other electronic items not covered under other rates - 28%

Are there any exemptions or concessions for electronic goods under GST?

Yes, there are a few exemptions and concessions for electronic goods under GST. For example, the GST rate on solar panels, batteries for solar panels, and other related products is only 5%. Additionally, the GST rate on certain electronic products for disabled persons is exempted.

Can businesses claim Input Tax Credit (ITC) on GST paid for electronic purchases?

Yes, businesses registered under GST can claim Input Tax Credit (ITC) on the GST paid for electronic purchases used for business purposes. The ITC can be used to offset the GST liability on their own sales.

Is GST applicable on the repair and maintenance of electronic devices?

Yes, GST is applicable on the repair and maintenance of electronic devices. The GST rate for repair and maintenance services is 18%.

How does GST impact the pricing of electronic products for consumers?

The implementation of GST has led to an increase in the prices of some electronic products, particularly those that were previously taxed at a lower rate. For example, the GST rate on mobile phones was increased from 15% to 18% in 2019, which led to a hike in the prices of mobile phones.

Can individuals claim GST refunds on electronic purchases for personal use?

No, individuals cannot claim GST refunds on electronic purchases for personal use. GST refunds are only available to businesses registered under GST.

How do I verify if the correct GST has been charged on electronic purchases?

To verify if the correct GST has been charged on electronic purchases, you should check the invoice issued by the seller. The invoice should clearly indicate the GST rate applied and the amount of GST charged. You can also use the GST Rate Finder tool on the GST portal to verify the correct GST rate for a particular product.

What are the implications of GST on electronic manufacturers and sellers?

The implementation of GST has had a significant impact on electronic manufacturers and sellers. They have had to adapt their systems and processes to comply with the new tax regime. Additionally, the higher GST rates on some electronic products have affected their profit margins.

Is GST applicable to imported electronic products and devices?

Yes, GST is applicable to imported electronic products and devices. The GST rate for imported goods is the same as the domestic GST rate for the same product. However, there may also be additional customs duties applicable to imported goods.


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