Mobile phones and accessories are subject to Goods and Services Tax (GST) in India. The government taxes mobile phones at 12% under the current tax structure, while it taxes accessories like chargers, earphones, and phone covers at rates ranging from 18% to 28%, depending on the item.
Before the introduction of GST, mobile phones were subject to Value Added Tax (VAT), which varied across states. The implementation of GST has not only streamlined tax rates but has also provided uniformity across the country, reducing confusion for both consumers and retailers.
Here’s a quick breakdown of the current GST rates on mobile phones and accessories:
| Item | HSN CODE | GST RATE |
| Phones | 8517 | 12% |
| Charger | 8504 | 28% |
| Earphone | 8518 | 18% |
| Battery | 8506 | 28% |
| Power Bank | 8504 | 28% |
| Leather Phone Case & Back Cover | 4202 | 28% |
| Memory Card | 8523 | 18% |
| USB Cable | 8504 | 28% |
| Headphones | 8518 | 18% |
| Plastic Screen Protector | 3919 | 18% |
| Tempered Glass Screen Protector | 3923 | 18% |
| Speakers | 8518 | 18% |
The introduction of GST has simplified tax calculations for consumers. Under the previous VAT system, rates varied across states, which led to confusion and pricing disparities. Now, with a uniform 12% GST rate, mobile phones are priced similarly across all states in India.
When you buy a mobile phone within the same state, the seller splits the 12% GST into SGST (State GST) and CGST (Central GST). However, if you purchase the mobile phone from another state, the seller charges IGST (Integrated GST) at 12%.
The Harmonized System of Nomenclature (HSN) Code plays a significant role in ensuring the correct application of GST rates. Incorrectly marked HSN codes can lead to wrong invoicing, which may result in additional costs for the consumer or loss for the seller.
For example:
Initially, the government taxed phone batteries at 28% under GST and other phone parts at 12%. This discrepancy prompted phone manufacturers to plead for a reduced tax rate on lithium-ion batteries commonly used in mobile phones. In response, the government revised the rates, lowering the tax on accessories like batteries, which benefits both manufacturers and consumers.
For mobile phone dealers, GST has brought several benefits:
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GST Rates on mobile phones and accessories have simplified taxation for both consumers and sellers. While mobile phones attract a 12% GST rate, accessories such as chargers and headphones are taxed between 18% and 28%. This uniformity has led to a more consistent pricing structure across states, benefitting both manufacturers and consumers.
Despite initial concerns about increased costs, GST has helped streamline the phone industry and has promoted growth in domestic manufacturing, contributing positively to the Indian economy.
The GST rate for mobile phones is 12%, regardless of whether it is a smartphone or a feature phone.</span>
Mobile accessories attract different GST rates, ranging from 18% to 28%, depending on the item. For example, chargers are taxed at 28%, and earphones at 18%.
For an intra-state purchase, the 12% GST is divided equally into SGST and CGST 6% each.
Yes, GST is applicable on mobile phone exchange offers. The exchange value is deducted from the phone’s price, and the GST is applied to the remaining amount.
HSN codes ensure that the correct GST rate is applied to each product. For mobile phones, the HSN Code is 8517, which attracts 12% GST.
While the GST regime has simplified taxation, it has not significantly reduced the price of mobile phones. However, it has created uniform pricing across states, eliminating VAT-based discrepancies.
No, both smartphones and feature phones are taxed at the same GST rate of 12%.
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