The Indian government introduced the Goods and Services Tax with the intent to consolidate a number of indirect taxes levied on goods and services. It is a multi-stage, comprehensive, destination-based tax charged on every value addition. On 29th March 2017, the GST Act was passed in the Parliament, and later implemented on 1st July 2017.
Electronic gadgets, like smartphones, come under GST. Before the new tax regime came into force, Value Added Tax was charged on the purchase of all the products, including mobile phones. VAT rates on smartphones were different in different states. However, now under the GST rules, the rate of tax on mobile phones is uniform across the country.
When an individual buys a new phone, he or she has to pay 12% as GST. The rate applicable on mobile accessories is 18%. Mobile phones come under Chapter 85 of the GST schedule as they use wireless networks. This chapter pertains to “Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles.
The following table comprises of the GST applicable on mobile phones and mobile accessories:
| HSN Code | ITEM | CGST Rate (%) | SGST / UTGST Rate (%) | IGST Rate (%) |
|---|---|---|---|---|
| 8517 | Mobile Phones “Telephones for cellular networks or for other wireless networks” | 6 | 6 | 12 |
| 8504 | Charger “Electrical transformers, static converters (for example, rectifiers) and inductors, other than charger or charging station for Electrically operated vehicles.” | 9 | 9 | 18 |
| 8518 | Earphones, Speakers and Headphones ‘Microphones and stands therefor; loudspeakers, whether or not mounted in their enclosures; headphones and earphones, whether or not combined with a microphone, and sets consisting of a microphone and one or more loudspeakers; audio-frequency electric amplifiers; electric sound amplifier set” | 9 | 9 | 18 |
| 8506 | Batteries “Primary cells and primary batteries” | 9 | 9 | 18 |
| 3919 | Plastic Screen Protector “Self-adhesive plates, sheets, film, foil, tape, strip and other flat shapes, of plastics, whether or not in rolls” | 9 | 9 | 18 |
| 3923 | Tempered Glass Screen Protector “Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics (except the items covered in Sl. No. 80AA in Schedule II])” | 9 | 9 | 18 |
| 4202 | Leather Phone Case and Back Cover “Trunks, suit-cases, vanity-cases, executive-cases, brief-cases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; travelling-bags, insulated food or beverages bags, toilet bags, rucksacks, handbags, shopping bags, wallets, purses, map-cases, cigarette-cases, tobacco- pouches, tool bags, sports bags, bottle-cases, jewellery boxes, powder-boxes, cutlery cases and similar containers, of leather, of sheeting of plastics, of textile materials, of vulcanised fibre or of paperboard, or wholly or mainly covered with such materials or with paper [other than handbags and shopping bags, of cotton or jute]” | 9 | 9 | 18 |
| 8523 | Memory Card “Discs, tapes, solid-state non-volatile storage devices, "smart cards" and other media for the recording of sound or of other phenomena, whether or not recorded, including matrices and masters for the production of discs, but excluding products of Chapter 37” | 9 | 9 | 18 |
Source: Central Board of Indirect Taxes and Customs - Goods and Services Tax
What is the GST applicable on mobile phones?
The GST levied on mobile phones is 12%.
What is the GST applicable on earphones?
The GST levied on earphones is 18%.
What is the GST applicable on power banks?
The GST levied on power banks is 18%.
What is the GST applicable on a memory card?
The GST levied on a memory card is 18%.
What is the GST applicable on a plastic screen protector?
The GST levied on a plastic screen protector is 18%.
