What is the GST Rate on Mobile Phones?

Millions of Indians buy new mobile phones every day. Have you ever wondered how many of them pause and think about what percentage of the price goes into GST? Only a few of them! More people should ask this question so that they don’t get cheated. With the intent to keep you informed, in this blog, we will discuss GST on mobile phones as well as mobile accessories in depth. 

How Much GST on Mobile Phones?

First things first, GST on mobile phones in India is 18%. Yes, that’s right. Whether you are buying a premium flagship, a cheap phone, or a feature phone for your grandparents, the GST rate remains the same.

But wait. Wasn’t it the Government that had slashed GST rates after the meeting of the GST Council in September? 

Yes, but it is applicable to other electronic goods (television, fridges, washing machines, etc), mobile phones did not make it to the list. Phones remained at 18% in the “standard goods” category under India’s new dual slab structure for GST.

So, how much GST is to be paid on your phone’s price?

Well, here’s a quick example you can relate to:

If your dream phone is priced at ₹20,000, GST adds ₹3,600 at 18% GST. 

That means at checkout, you will be paying ₹23,600

Note: Most of the mobile phone stores in India quote the final price of the mobile, which is inclusive of GST. That is the reason why you may not be aware of it. But when you check the invoice, you can find a clear breakdown of the selling price and the tax added. 

Is GST Different Based on Mobile Price?

There’s been some confusion around whether the rate of the GST changes according to the price of mobile phones. The truth is, the GST rate of 18% is the same no matter what the price of the mobile is. There is no difference in the GST rate for phones under ₹10,000 or above ₹10,000. 

Does GST Apply to All Mobile Phone Purchase Transactions?

One of the classical situations is, if the phone is purchased online through e-commerce like Amazon, Flipkart or through a local shop, and you buy that phone, is 18% GST applicable? The answer is yes. GST is applied on the selling price, and there is no difference in rates for online or offline transactions, irrespective of the mode of payment. 

How Can You Save or Offset GST When Buying a Mobile Phone?

Though there was no relief in GST on mobile phones under GST reforms 2.0, there are tricks to either save or offset the GST paid on mobile phone purchase. The tricks are as follows: 

Check for Discounts and Offers: Sometimes, the sellers offer discounts that help bring down the total cost of the mobile phone. By searching for special deals, you may be able to lower the overall price of the mobile phone. 

Buy During Festive Seasons: During major festive seasons, such as Diwali or New Year, many retailers and e-commerce stores offer massive discounts that may help you save money even after paying the GST amount. 

Buy from a GST-Registered Seller: If you are a GST-registered business owner and you are buying phones to resell or use in your business, make sure that the seller is also registered with GST. This way, you will be able to claim the Input Tax Credit on the amount of GST paid on the purchase of the phone and reduce your overall tax burden.

GST on Mobile Phone Accessories

Now that you know what the GST rate is on mobile phones in India, you should also know the GST rate on mobile phone accessories. We are saying this because accessories can be sold bundled with mobile phones easily, rather than selling them separately. Here is the list of mobile accessories and their corresponding GST rates: 

• Charger: 18%
• Battery: 18%
• Earphones/Headphones: 18%
• Power bank: 18%
• Screen protectors: 18%

GST Compliance for Mobile Phone Shop Owners

If you are a mobile phone shop owner, you should know how to comply with GST. Whether you’re a bulk mobile phone seller or a retailer, here are the things you need to do so you can stay compliant:

GST Registration: Make sure that your business is registered under GST if your turnover is more than the prescribed threshold. If you want to know more about the turnover limit, read our latest blog on GST Registration Turnover Limit. 

Tax Filing: Once your business is registered under GST, ensure that you file GST returns are filed regularly. Late filing of the return may attract penalties or interest.

Maintain Proper Records: Proper records of all purchases of mobile phones and accessories should be kept in order to ensure filing is seamless and to avail maximum benefit by claiming ITC.

HSN Codes of Mobile Phones and Accessories

If you are applying for GST registration or setting up your new accounting software, you have to mention the HSN code of the products you deal in. Here is the list of HSN codes of mobile phones and accessories that you can refer to: 

HSN Code	Product
8507 60 00	Lithium-ion batteries
8507	Power bank
8523	Memory card
3919	Plastic screen protector
85	Parts for the manufacture of cellular networks
8518	Speakers, headphones, earphones
8517	Mobile phone
7007	Tempered glass screen protector

Over To You 

Mobile phones are an integral part of our lives today, and it is essential to understand the GST on mobile phones to make an informed purchase. By being aware of the mobile GST rate and of its impact on your final cost, you can more effectively budget.

If you are a business owner struggling to file GST returns, we recommend that you sign up with Munim GST Return Filing software and start filing your GST with absolute ease. 

Frequently Asked Questions

How much is the GST on mobile phones?

Mobile phones in India attract 18% GST.

Can we claim GST on mobile phones?

A GST-registered business can claim GST on mobile phones it is purchased for business​ use.

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