Mobile phones and mobile accessories fall under Goods and Services Tax (GST) in India. Currently, the GST rate on mobiles is 12% (irrespective of whether it is a smartphone or a feature phone). The rate of GST on mobile electronic accessories is 18%.
Before the inception of Goods and Sales Tax (GST) in India, Value Added Tax (VAT) was levied on the purchase of all electronic entities, including mobile phones. The applicable VAT rates on mobile phones were different in different states.
The GST on mobile phones is set at 18%, covering smartphones, feature phones, Android tablets, and iPads, effective from April 1, 2020. This uniform rate applies across all states, streamlining the taxation process compared to the earlier Value Added Tax (VAT) system.
For example, if a mobile phone costs ₹15,000, the GST amount would be 18% of the price, which is ₹2,700. So, the total cost of the phone would be ₹17,700.
GST Rate on Mobile Accessories with HSN Code
Item | HSN CODE | GST RATE |
| GST on Mobile Phones | 8517 | 18% |
| GST on Charger | 8504 | 28% |
| GST on Battery | 8506 | 28% |
| GST on Power Bank | 8504 | 28% |
| GST on Leather Phone Case & Back Cover | 4202 | 28% |
| GST on Memory Card | 8523 | 18% |
| GST on USB Cable | 8504 | 28% |
| GST on Earphone, Headphones and Speakers | 8518 | 18% |
| GST on Plastic Screen Protector | 3919 | 18% |
| GST on Tempered Glass Screen Protector | 3923 | 18% |
When SGST & CGST or IGST is Applied – Inter and Intra State Tax
When a customer buys a mobile phone, as mentioned, 12% of GST on the phone has to be paid by the customer. If the customer is buying a phone from the dealer within the state premises, then that 12% mobile phone GST rate is divided equally into SGST (State GST) and CGST (Central GST).
On the other hand, if the customer gets the phone from a dealer from another state, then 12% IGST will be applicable.
GST for Mobile Phones in India and Battery Issues
Indian phone companies had asked the government to change the GST rate for lithium-ion batteries and charge a 12% tax on them as they are primarily used to manufacture the phone. Parts that are used for the phone have levied a fee of 12% while these batteries were getting charged 28%, and it is this discrepancy that led to the plea.
However, it was also reported levying SGST, IGST, and CGST affects the supply chain, adds interpretational challenges and makes the viability of low-scale production more difficult.
After the plea gained momentum, the government decided to slash GST rates of around 50 items, including mobile accessories, and companies have assured clients that they will ensure the lowered GST rates will reflect as a reduction in the purchase price as well.
How Does GST Benefit the Dealers of Smartphones?
- In today’s generation, where having a smartphone has become a necessity, sales are increasing day by day for electronic goods manufacturers & dealers having GST registration.
- Before GST, under the VAT regime, the price of a smartphone wasn’t fixed as it varied from state to state.
- GST provides the same taxation rate across all the states in India with a market value of 12%, and the related HSN code is 8517.
GST Calculation on Mobile Phones
Formula to Calculate Mobile GST Rate:
GST amount = (Price of product × GST rate) / 100
For instance, if a mobile phone costs ₹25,000, the GST at 18% would be ₹4,500 (18% of ₹25,000).
Using this formula, you can calculate the GST on any mobile phone by entering its price and the applicable tax rate.
FAQs
What is the process for registering GST on Mobile Phones & Accessories?
- Obtain GST Registration: Businesses selling mobile phones and accessories must be registered under GST if their turnover exceeds the prescribed limit (₹40 lakh for goods and ₹20 lakh for services).
- File GST Returns: Registered businesses must regularly file GST returns, including GSTR-1 (sales details) and GSTR-3B (summary of taxes paid and collected).
- Maintain Tax Invoices: Proper tax invoices must be issued for the sale of mobile phones and accessories, showing
What is the GST rate on Mobile Phones?
The GST rate on mobile phones in India is 18%. This applies to the sale of mobile phones, including smartphones and other types of mobile devices.
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