Introduction
Since it isGoods and Services Tax (GST)introduced to India, has been the subject of debate. One of the most frequently asked questions is: What is the GST rate on a mobile phone? This article will provide an overview of the GST on mobile phones to help you understand how this tax affects your purchasing decisions. We'll discuss how GST applies to mobile phones, provide possible exemptions, and identify the current GST on mobile phone purchases. That way, you can make informed decisions when buying new or used smartphones. So let's dive deeper into understanding GST on mobile phones!
How has the price of mobile phones changed due to GST?
Before the introduction of the GST, mobile phones were subject to different taxes. This included luxury taxes, VAT, and other taxes that varied from country to country. After the introduction of GST in 2017, all these taxes were brought together under one tax: GST. The current GST rate on mobile phones is 18%, regardless of whether it is a new or used phone.
GST on mobile phones - Applicable GST rates
The current GST on mobile phones is divided into CGST (Central Goods and Services Tax) and SGST (State Goods and Services Tax). CGST is a tax collected by the central government, while SGST is collected by the state government. The rate of both taxes is 9%, which means that the total VAT on mobile phones is 18%. There are different mobile GST charges based on location.
When does SGST & CGST or IGST apply - Interstate Tax and Intrastate Tax
In cases of interstate purchases, that is, when the seller and the buyer are from different states, the IGST (Integrated Goods and Services Tax) is applied. The rate of this tax is 18%, which is higher than that of the CGST and SGST, since it includes both central and state taxes. On the contrary, intrastate purchases, that is, when both the seller and the buyer are from the same state, only CGST and SGST apply.
What is the GST rate for mobile phones and accessories? Meaning of the HSN code
Gentle | HSN code | GST the stopa |
mobile phones and accessories | 81 Mobile phones (including smartphones) and accessories | 18% CGST + 18% SGST/ 9% IGST |
Spare parts and accessories for mobile phones (except batteries and chargers) | 8517 Parts and accessories for mobile phones | 18% CGST + 18% SGST/ 9% IGST |
Batteries and chargers for mobile phones | 8507 Electric accumulators, including separators. Lithium ion batteries, battery chargers | 18% CGST + 18% SGST/ 9% IGST |
GST for mobile phones in India and battery problems
The Indian government recently imposed an 18% VAT on mobile phone batteries. This is because cell phone batteries are a huge hazard to the environment if not disposed of properly. The GST tax on mobile phones is intended to discourage people from buying mobile phone batteries without a prescription and to ensure that these items only come from authorized retailers who can dispose of them properly and in an environmentally friendly manner. Also, it is important to remember that any price discounts given by the seller on mobile phone parts and accessories (other than batteries and chargers) will not qualify for the GST exemption.
How beneficial is GST for smartphone retailers?
● VAT on phones has helped smartphone retailers by offering uniform prices across states. This facilitated the calculation of the supported tax credit and the reimbursement claim, reducing bureaucracy.
● It also simplified compliance procedures, making it easier to comply with tax laws.
● In addition, GST helps reduce costs associated with various taxes, such as transportation costs due to interstate transactions.
● Finally, GST on the phone eliminates the cascading effect of multiple taxes, resulting in greater efficiency and better profitability for merchants.
This helps them pass some of those benefits on to consumers through lower prices. Understanding the applicable GST on mobile phones can be of great importance while buying new or used smartphones in India. With the help of GST, retailers can benefit from a single tax rate and reduced red tape, allowing them to pass some of their savings on to customers. In addition, you help protect the environment by discouraging the purchase of mobile phone batteries without a prescription and ensuring they are disposed of in an environmentally friendly manner.
What is the impact of GST on various mobile phones and accessories?
●Offers with taxable change:
GST also allows users to take advantage of taxed exchange offers. This means that a customer can buy phones and accessories with cash, card or wallet and get the same amount of discount that they would have had if they had bought on a pre-tax basis. For example, if a customer buys a phone worth Rs 10,000 at a sale price of Rs 8,000, she will get a discount (Rs 2,000) even after the introduction of GST.
●The latest advantages of the Internet:
The GST tax has resulted in the withdrawal of benefits and online discounts on mobile phones. Previously, customers could take advantage of discounts by shopping on e-commerce sites because they didn't have to pay sales tax or VAT. However, after the introduction of GST, such offers are no longer valid as GST applies to all types of transactions, regardless of their medium.
●New indirect tax system:
The introduction of GST has given rise to a unique indirect tax system in India. It replaced multiple taxes with a single tax, making it easier for the government to monitor tax collection and ensure compliance. This benefits buyers and sellers as they can now make informed decisions when buying or selling mobile phones thanks to better access to information on applicable taxes.
●Impact on the price of a smartphone:
The overall effect of GST on the price of mobile phones has been marginal. It is estimated that prices have increased by around 2-3% in some cases due to the introduction of VAT. However, this may vary from product to product depending on its value and the applicable tax rate.
●GST on the importation of mobile phones:
GST also applies to imported mobile phones. The import duty, which was previously calculated separately, is now part of the GST rate. This makes it easier for the customer to understand how much they are paying and to receive one receipt for their purchases instead of multiple receipts.
Can the ITC be claimed on mobile phones?
Yes, ITC can be claimed on mobile phones and accessories. GST-registered dealers can claim the entry tax credit if they purchase mobile phones from other GST-registered dealers. This helps them reduce their overall tax burden while increasing efficiency in paperwork and compliance processes.
GST benefits for smartphone retailers
1. Increased sales turnover due to reduced paperwork and compliance processes.
2. Uniform tax rate across the country, creating less hassle when transacting with different states.
3. Lower production costs as retailers no longer have to suffer the cascading effect of multiple taxes.
4. Improved profitability due to greater efficiency and lower cost structure.
GST Impact on Exchange Offers and Discounts:
The introduction of GST has made it easier for customers to take advantage of exchange and discount offers. Since VAT is included in the purchase price, users can now enjoy the same benefits without worrying about additional taxes. Furthermore, merchants can offer competitive prices as they no longer have to bear the burden of multiple taxes such as VAT, service tax and excise duties. As a result, customers can get the best value for money when purchasing mobile phones and accessories.
How to calculate GST on a mobile phone
Suppose you buy a phone worth Rs 10,000 at a sale price of Rs 8,000. The applicable VAT rate is 18%.
Therefore, the total amount (including taxes) will be calculated as follows:
Total Amount = Offer Price + (Offer Price * GST Price/100) = 8000 + (8000*18/100)
Total amount = 9440 rupees
Thus, if a customer buys a phone worth Rs 10,000 at a sale price of Rs 8,000, he will get the phone for Rs 9,440 after paying the applicable GST.
VAT on mobile phones has given rise to a unique indirect tax system in India. It has made it easy for users to take advantage of trade-in and discount offers and claim the gate tax credit on purchases from other GST-registered merchants. The overall impact of GST on mobile phone prices has been marginal and is estimated to be around 2-3% below GST for mobile phones by 2023.
How does the GST rate affect the economy?
The GST rate affects the economy in many ways. It helps stimulate economic growth by encouraging more people to buy goods and services, reducing your overall tax burden. At the same time, it leads to better compliance among companies, which leads to better revenue for the government. Different ways in which the GST rate affects the economy:
●Single/unified tax regime:
The introduction of GST has greatly simplified the tax system in India. It provides a uniform tax rate applicable throughout the country, thus eliminating any discrimination between states. This is beneficial for both clients and businesses as they now have a single set of rules to follow when it comes to taxes.
●Increase in exports:
Single/Uniform Tax System: The introduction of GST has greatly simplified the tax system in India. It provides a uniform tax rate applicable throughout the country, thus eliminating any discrimination between states. This is beneficial for both clients and businesses as they now have a single set of rules to follow when it comes to taxes.
●Increase in exports:
GST has also given a boost to exports. This is because the GST rate in India is lower compared to other countries, making it easier for Indian exporters to compete with their foreign counterparts. This led to an increase in India's exports of goods and services and thus boosted the economy.
●Increased competition:
GST also increases competition between companies. This is because GST helps them reduce their costs, which allows them to offer competitive prices and better quality products. This helps customers get the best value for their money while encouraging businesses to be more efficient and productive.
●Simple and clear structure:
The GST system is relatively simple and easy to understand. This helps companies save time and money in compliance processes as they are now familiar with the tax structure. Also, users no longer have to bear the burden of multiple taxes, since all taxes are governed by a single rate.
FAQs
GST on Mobile Phones and Accessories in India 2023 | 5 played? ›
CGST is a tax imposed by the Central Government, while the State Government imposes SGST. The rate for both of these taxes is 9%, which means that the total GST on mobile phone is 18%.
How much GST on mobile accessories in India? ›The GST rate on electronic mobile accessories is 18% however other accessories may feature different GST rates.
How much GST can be claimed on phone? ›Under the GST law, the rate applicable on mobile phones is 18%. Hence, the GST rate on iPhones is 18%. It falls under the HSN code 8517. Note here that if the iPhone purchase is made from a dealer located in the same state/Union Territory, then the customer is charged CGST at 9% and SGST at 9%.
What is the GST rate of iPhone 13? ›Because Apple has to pay custom duty on the iPhones in India, which is passed on to the customers. Not to forget there's 18% GST, which has to be paid on all mobile phones in India now.
How much is GST on iPhone in India? ›The counterpoint of this is 18 per cent GST, which is standard across India and is included in the maximum retail price. Of the Rs 79,900 iPhone 14, the GST alone amounts to Rs 12,188.14 . This had been added over and above the cost of the iPhone, which also includes duties.
What is the GST rate for electronic accessories? ›Electrical & Electronics Items Taxed at 18% GST
Transmission, distribution, and associated products are taxed at a rate of 18%.
The Goods and Services Tax (GST): Electronic goods are mostly at 18%.
Can I carry sealed iPhone from USA to India? ›You can carry the new iPhone in your pocket but custom duty is required to be paid if the total value is greater than 10,000 Indian rupees. You can carry mobile but if you do not declare it on the customs form, you may have to pay a penalty if you are caught. How much GST is charged on Imported Mobiles in India?
Can I claim GST refund for mobile? ›A person who has registered under GST can claim input Tax Credit only if the following conditions are met. And yes, the mobile phones/ laptops would be covered under the ITC as they are used in the furtherance of business.
Which product has highest GST in India? ›...
Kinds of GST Rates and Structures in India.
| Products | Tax Rates |
|---|---|
| Consumer durables such as AC and fridge | 28% |
| Beedis are NOT included here | 28% |
| Luxury & sin items like BMWs, cigarettes | 28% |
| and aerated drinks (+15% cess) | 28% |
How many phone can I carry to India from USA? ›
According to the Indian Customs Department, Indian citizens returning from a foreign trip are allowed to bring in one mobile phone per person duty-free, as long as the phone was acquired abroad and is being brought in for personal use.
What is the price of iPhone 13 in India without GST? ›A fully build smartphone unit imported in India draws 22.5 per cent duties, amounting to approximately Rs 10,880.32 before GST on iPhone 13 mini. In all, for Rs 69,900 iPhone 13 mini, consumers are paying approximately Rs 21,543.03 in taxes & duties.
Is there tax on iPhone in USA? ›Apple iPhone 14 price in the US starts from $799 (Rs 63,920 approx) for the 128GB variant. You also have to pay an additional tax ranging from around 8.5 per cent to 13 per cent, based on which state you are buying the iPhone 14 or the iPhone 14 Pro from.
Can we get GST refund on iPhone? ›Products purchased at Apple Store in India cannot be refunded or exchanged.
Why iPhone is costly in India? ›The PCBA (printed circuit board assembly) used in iPhones attracts an import duty of 20 percent. Similarly, iPhone chargers also cone with an import duty of 20 percent. Besides import duty, a goods and services tax (GST) of 18 percent -- standard for all smartphones -- is also levied on Apple products in India.
Does Apple provide GST invoice? ›Apple India currently does not offer the option of GST Invoice for Businesses.
What is the lowest GST rate in India? ›The primary GST slabs for any regular taxpayers are presently pegged at 0% (nil-rated), 5%, 12%, 18% & 28%. There are a few lesser-used GST rates such as 3% and 0.25%. Also, the composition taxable persons must pay GST at lower or nominal rates such as 1.5% or 5% or 6% on their turnover.
How much is GST on TV in India? ›The GST rate for smart TVs is determined by the size of the screen. If the screen size is 32 inches or less, then 18% GST is charged. However, if the screen size is greater than 32 inches, then 28% GST is levied.
How do I claim my GST refund? ›- Login to GST portal for filing refund application under refunds section.
- Navigate to Services > Refunds > Application for Refund option.
- Select the reason of Refund as 'Refund on account of excess balance in cash ledger'.
GST rate on smart TV depends on the screen size. If it is equal to or below 32 inches, then 18% GST is charged. However, if screen size is more than 32 inches, then 28% GST is charged.
What is the GST rate for Samsung refrigerator? ›
GST Tax Rate: 28%
What is the GST on air conditioner? ›Under GST, the tax rate on air conditioners is 28%.
What is the customs limit from USA to India? ›should not exceed total of 10,000 US Dollars or its equivalent. Foreign Currency Notes should not exceed 2,500 US Dollars or its equivalent. If it is above this limit, then you need to declare it at the customs and fill out a CDF (Currency Declaration Form).
Can I bring 2 laptops from USA to India? ›Number of Devices, Duty-Free Limit, and Gadget Import Limit
One can bring two laptops to India and for more laptops, they have to pay customs duty. There are some exemptions like if the laptop is a used one and you can prove that with its original receipt.
Allowed in check-in baggage, subject to BCAS regulations. Allowed in check-in baggage, subject to BCAS regulations. Each passenger is limited to a maximum of 15 portable electronic devices (PED).
How can I save GST on mobile purchase? ›If you want to claim ITC against this purchase of Mobile Phone then you have to take the revised or amended invoice in the name of company from the supplier. If GST No. of company is mentioned in Invoice and same is being reflected in 2A then there should not be problem to take credit of it.
Who can claim GST refund in India? ›Any taxpayer can claim a refund of any tax, interest, penalty, fees or any other amount paid by him by filing an application electronically in FORM GST RFD-01 through the GST Common Portal or through a GST Facilitation Centre.
How do I get GST input on Amazon? ›Go to the Business Settings page and select Manage GST to view all the GST numbers registered to your account. You can add new GST numbers, or delete existing numbers. Select Manage to change the address and phone number for any existing GST number.
Which item has no GST in India? ›Fresh fruits, Fresh milk, Curd, Bread, etc. Exports and Supplies made to SEZ or SEZ Developers, of both goods and services. Grains, salt, Jaggery, etc. Alcohol used for human consumption, Natural gas, Petrol and its products, electricity, etc.
Why is India GST so high? ›The surge in goods and services tax collections is more due to higher inflation than higher consumption, said India Ratings and Research in a note on Thursday. It said that higher GST collections should not be construed as an indication of a rise in consumption demand.
Which month has highest GST in India? ›
₹1,60,122 crore gross GST revenue collected for March 2023
This month witnessed the highest IGST collection ever. The government has settled ₹33,408 crore to CGST and ₹28,187 crore to SGST from IGST as regular settlement.
Carrying one sealed box of iPhone might not be an issue but if you are carrying 3-4 devices, you will have to show the receipts of your purchases and might even have to pay a customs duty. So, it's better that you avoid carrying more than two phones on your flight from USA to India.
Can I carry 3 mobile phones to India? ›There is no special allowance for bringing mobile phones to India. Normally Customs Officers do not mind if you are carrying one used mobile phone for your personal use. If you are carrying extra mobile phones in your baggage, they may be considered under the Rs 50,000 duty-free allowance.
Can I buy iPhone in USA and take it in India? ›Apple's support page that lists telecom service providers that support e-SIM too has the names of all these three companies listed. This means that if you get an iPhone 14 from the US it will work in India. But yes, make sure that you buy an unlocked iPhone only. e-SIM technology provides better quality connection.
Is iPhone 13 cheaper in US or India? ›Even if you include state taxes, which are as low as 7 per cent in Florida, one can buy iPhone 13 Pro Max at about Rs 90,000 in the US, which would be cheaper by Rs 40,000 compared to Indian prices.
What is the price of iPhone 13 Pro Max 256GB in India with GST? ›| Product Name | Price in India |
|---|---|
| iPhone 13 Pro Max (256GB) - Graphite | ₹ 139,900 |
| iPhone 13 Pro Max (256GB) - Silver | ₹ 139,900 |
| iPhone 13 Pro Max (1TB) - Sierra Blue | ₹ 155,999 |
| iPhone 13 Pro Max (256GB) - Gold | ₹ 127,900 |
For instance, iPhone 13 models will be imported in India, which means that Indians will have to pay 22.5% of customs duties on the smartphone. Indian customers will have to pay about Rs 10,880 as custom taxes on iPhone 13 mini purchases. Moreover, customers will have to pay GST on iPhone 13 purchases.
What is the difference between price of iPhone in India and USA? ›The iPhone 14 Pro is priced at $999 in the US, which roughly translates to around Rs 79,600. In India, the iPhone 14 Pro starts at Rs 1,29,900, which is more than Rs 50,000 more expensive than the iPhone 14 Pro in the US.
What is the GST discount on iPhone? ›So as per GST law it is mandatory to reverse ITC for the remaining useful life of the IPhone (Capital Good) to the Government, otherwise interest @18% will be levied accordingly on the taxpayer.
Are Apple products cheaper in US than India? ›In India, the iPhone 14 series is significantly more expensive than in the US, with some models costing over Rs 50,000 more. For example, the iPhone 14 Pro costs Rs 129,900 in India, compared to its US price of $999 which roughly translates to around Rs 79,600.
How much custom duty on iPhone in india? ›
| HS Code | 39269099 |
|---|---|
| Customs Duty (%) | 10% |
| IGST | 12% |
| Compensation Cess | 0% |
| Specific Duty (%) | Not Applicable |
Returns and Exchanges
Products purchased at Apple Store in India cannot be refunded or exchanged. If you believe that your new Apple product is defective please contact Apple Store Customer Service to discuss your options.
| iPhone 13 Pro | AT&T | Apple.com |
|---|---|---|
| Base Price | $999 | $999 (unlocked) |
| Trade-in Value (iPhone 11) | $1,000 | $340 (instant credit or Apple Gift Card) |
| Device cost at checkout = tax (4.5%) | $44.96 | $29.66 |
| Activation Fee | $30 | 0 |
Best iPhone Overall: iPhone 14 Pro and iPhone 14 Pro Max
Regardless of their high price, the iPhone 14 Pro models have several upgrades and features over their predecessors. They offer better value for money, especially if you hold on to your iPhone for the long run.
| Apple Mobiles Price List | Price | Gadgets 360 Rating |
|---|---|---|
| iPhone 13 Pro Max | Rs. 1,13,900 | 9 |
| iPhone 13 Pro | Rs. 73,990 | 9 |
| iPhone 13 mini | Rs. 61,999 | 9 |
| iPhone 13 | Rs. 59,999 | 9 |
Apple iPhone 13 model is the best-selling smartphone for the Q4 of 2022. Apple's iPhone 13 was launched back in September 2021.
How much is GST on Iphone in India? ›Because Apple has to pay custom duty on the iPhones in India, which is passed on to the customers. Not to forget there's 18% GST, which has to be paid on all mobile phones in India now.
How much is GST on mobile phones in India? ›What is the GST rate on mobile phones? The GST rate on mobile phone in India is 18%.
Do Apple purchases include GST? ›We are GST registered and charge GST for Australian Sales of APP. Apple store state that they will deduct GST payment from any sales they record for Australian Sales in future as they claim to be the vendor.
What is the HSN code for mobile accessories 12%? ›| HSN Code | Product Description |
|---|---|
| 8529 | Parts suitable for use solely or principally with the apparatus of headings 8525 to 8528 |
| 852990 | Other: |
| 85299090 | Other |
| 3926 | Other articles of plastics and articles of other materials of headings3901 to 3914 |
How much GST on laptop accessories in India? ›
IT accessories play an important role in enhancing the digital experience derived from a laptop or computer. The applicable GST rate on IT accessories such as LAN and data cables is set at 28% each; earlier, the applicable rate was 17.5%.
What is the HSN code for mobile accessories and GST rate? ›| Product Name | HSN Code | GST Rate |
|---|---|---|
| Mobile Phones | 8517 | 18% |
| Charger | 8504 | 18% |
| Earphone | 8518 | 18% |
| Lithium-ion Batteries | 8506 | 18% |
| Hs Code | Description | No of Shipments |
|---|---|---|
| 39232990 | Other | 24 |
| 8507 | Electric Accumulators, Including Separators Therefor, Whether Or Not Rectangular (Including Square) | |
| 85079090 | Other | 9 |
| 85078000 | Other accumulators | 7 |
Can I claim input credit on GST on a laptop? Yes, if you purchase from a GST-registered retailer and receive a debit note/tax invoice. You can file for input credits.
How to get GST discount on Flipkart? ›To avail GST benefits on your purchase on online stores, all you need to do is select a product, add to cart, place order, then under order summary select 'use GST invoice'.
How much is GST on a TV? ›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 18% HSN code for mobile phone? ›As per the rules of GST, the tax rate on mobile phones is the same across the nation. GST rates applicable on mobile phones are 18% and the mobile HSN code is 8517.
Can I claim GST on Iphone? ›A person who has registered under GST can claim input Tax Credit only if the following conditions are met. And yes, the mobile phones/ laptops would be covered under the ITC as they are used in the furtherance of business.
What is the HSN code of Samsung mobile? ›India exports most of it's Samsung mobile and HSN Code 8517 to United Arab Emirates, Austria and Russiaand is the 2nd largest exporter of Samsung mobile and HSN Code 8517 in the World.
What is the HS code for mobile phone accessories? ›Mobile phone accessories and HSN Code 85171290 Exports from World.
What is the HS code for laptop and accessories? ›
Can be used for an export declaration.