Several television models are subject to Goods and Services Tax (GST). The implementation of the GST and the further subsuming of all other tax regimes have influenced the TV market and its elements in distinct ways. In this aspect, this blog contains significant information regarding GST on television in India.
In 2017, the government of India introduced GST and took entire products and services under its purview, replacing VAT, excise duty, and service tax. The TV GST rate ranges from 18% to 28%, depending on the screen size. In this article, we will discuss GST on television
The GST was introduced by the Indian government to replace numerous indirect taxes. This taxation reform revolutionized how taxes on products and services were levied. The previous taxation system required indirect taxes to be paid at each stage of the manufacturing process. This was significantly considered burdensome. The GST was introduced to implement uniform taxation rates that support the prevention of corruption and also accelerate the curbing of tax evasion.
The rate of GST in India is determined through the GST Council based on the HSN code system. The GST is levied at 0%, 5%, 12%, 18%, or 28% in the country for all goods and services. The television industry has been significantly impacted by the introduction of GST, which has had an impact on both Indian manufacturers and customers.
Taxability of GST on Television
As per the GST, tax is charged on the sale of TVs and any other electric items. According to Section 7 of the Goods and Services Act 2017, any supply would be included under the scope of GST until it was exempted in a specific manner. As a result, the sale or leasing of television is subject to GST at a specific rate, as discussed in the following paragraphs. The sale of television is taxable as per GST, and it is not exempted through any notification.
The minimum selling price (MRP) in outlets or the price reflected in online shopping normally includes GST. For the sale of televisions, the value of supply for the computation of GST is the selling price of the TV and its accessories.
Wondering how to calculate GST percentage? Use our online GST calculator India for accurate results.
Prices of Television Prior and Under GST
In the course of the pre-GST era, value-added tax (VAT) has been levied by most of the states in India on home electric items at 11% to 12.5%. However, the comparable electronics segment also had a 12.5% excise duty. As a result, customers must pay taxes on televisions ranging from 22-38%. OCTROI was previously levied at rates up to 5% higher than the above rate in a few states.
With the implementation of the GST registration, the division in taxation has been done away with. Presently, GST is charged on television between 18% and 28%. Therefore, the prices of smaller televisions came down overall after the application of GST.
Though the prices of big-screen televisions and luxury TVs are still very high,
The following example illustrates how television prices changed before and after the GST:–
| Particulars | Pre GST (₹) | Post GST (₹) |
| Value of Television | 10000 | 10000 |
| Add: Excise duty (12.5%) | 1250 | – |
| Total amount | 12250 | 10000 |
| Add: VAT (12.5%) | 1406 | – |
| Add: GST at 18% | – | 1800 |
| MRP of television | 12656 | 11800 |
HSN Code and GST on Television
Chapter 85 of the HSN code contains HSN for all TVs and accessories thereto. HSN Chapter 85 TVs are subject to 18% to 28% GST.
The following table shows HSN codes, items, and rates of GST.
| HSN code | Items | GST rate |
| 8528 | LED TV less than or up to 32 inches | 18% |
| 8528 | Set Top Box for TV | 18% |
| 8528 | Monitors and projectors | 28% |
| 8528 | LED TV 43 inches | 28% |
| 8528 | LED TV 55 inches | 28% |
| 8528 | LED TV 55 inches and above | 28% |
Whether a person can claim an input tax credit on purchasing a TV
Yes, ITC is permitted. Section 17(5) of the Central Goods and Service Tax Act 2017 does not restrict the ITC on television.
How much GST is charged on smart televisions?
The rate of GST on smart TVs is based on the screen size. If the screen size is equivalent to or less than 32 inches, then 18% GST is levied. But if the screen size is higher than 32 inches, then 28% GST is charged.
What is the HSN code for the LED television?
For the LED TV, the HSN code is 8528.
How is GST treated as a discount on purchasing a television?
If after-sales discounts were not predicted during a television sale, the discount could not be reduced from the value of sales for the computation of GST.
Conclusion
Overall, the introduction of the GST has assisted towards uniformity in the taxation system, and the economy at large has observed great benefits from this taxation system. Thus, understanding the GST has become significant for individuals to recognise the pricing and taxation behind products and services.
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In conclusion, while the GST has brought several benefits to the Indian economy, its application to the television industry has had some negative consequences. The high rate of GST on televisions has resulted in an increase in the cost of televisions, which has affected the growth of the industry. It remains to be seen whether the government will take steps to address these concerns and make the GST more beneficial to the television industry.
