Electronic devices are the foundation of the growing digital landscape in India. Naturally, bringing them under the umbrella of GST is a step towards making taxation on them simpler. GST has replaced VAT, service tax, and excise duty, and the GST on electronics may vary from 5% to 28%. The rate of GST on electronics is slightly higher than the rates of the combined taxation regime. This has made electronic items slightly costlier for consumers. Implementing GST on electronic items streamlines taxation on electronics and reduces compliance costs for business owners dealing with electronic items.
Table of Contents
What is GST on Electronics and Electrical Items?
The rate of GST on electronics changes per the classification of the electronic items. The GST on electronic items generally falls under five tax slabs: 0%, 5%, 12%, 18%, and 28%. For example, mobile phones and refrigerators attract a GST of 18% while air conditioners and television sets exceeding 32 inches attract a GST of 28% as they are categorized as luxury goods. Understanding these rates helps businesses and consumers navigate the cost implications of purchasing and selling electronics.
How GST on Electronics and Electrical Items are Classified?
GST on electronics and electrical items is classified based on various factors including utilization, size, and capacity. For instance:
-
Utilization
Items in manufacturing or specific industries might have different GST rates. Moreover, the GST rate on electronic items classified as luxury items also attracts higher GST rates.
-
Size and Capacity
Larger or more advanced products, such as industrial machines or high-capacity appliances, might attract higher GST rates.
This classification ensures that the tax system accommodates the diverse range of electronics and electrical items available in the market.
Electrical and Electronics Items Subject to 0% GST
Currently, no specific electronics or electrical items are categorized under a 0% GST rate. Most electronic items are subject to higher GST rates, reflecting their consumer and business impact.
Electrical and Electronics Items Subject to 5% GST
The following items attract GST on electronics at the rate of 5%:
Item |
HSN Code |
GST Percentage |
| Electric Vehicles |
87 |
5% |
| Chargers for Electric Vehicles |
8504 |
5% |
The GST on electric vehicles has been allotted a lower GST bracket to promote an environmentally friendly option.
Electrical and Electronics Items Subject to 12% GST
The following items attract GST at the rate of 12%:
ITEM |
HSN CODE |
GST Percentage |
| Solar water heater and system |
8419 12 |
12% |
| Bio-gas plant |
84, 85, 94 |
12% |
| Solar-powered devices |
84, 85, 94 |
12% |
| Solar power generators |
84, 85, 94 |
12% |
| Windmills, Wind Operated Electricity Generator (WOEG) |
84, 85, 94 |
12% |
| Waste to energy plants/devices |
84, 85, 94 |
12% |
| Solar lantern/solar lamp |
84, 85, 94 |
12% |
| Ocean waves/tidal waves, energy devices/plants |
84, 85, 94 |
12% |
| Photo voltaic cells |
84, 85, 94 |
12% |
| Instruments used in surgical, medical, dental, or veterinary sciences |
9018 |
12% |
Electrical and Electronics Items Subject to 18% GST
The following items attract GST at the rate of 18%:
ITEM |
HSN CODE |
GST Percentage |
| Refrigerators |
8418 |
18% |
| Television sets up to 32 inches |
8528 |
18% |
| Mobile phones |
8517 |
18% |
| Printers |
8443 |
18% |
| Refrigerators |
8418 |
18% |
| Electrical Capacitors |
8532 |
18% |
| Electrical Resistors |
8533 |
18% |
| Vacuum cleaners |
8508 |
18% |
| Electric smoothing irons/Electric water heaters/ Hair dryers |
8516 |
18% |
| Electrical lamps |
8539 |
18% |
| Microphones and loudspeakers, headphones and earphones |
8518 |
18% |
| Camera |
9006-9007 |
18% |
| Electrical transformers, static converters |
8504 |
18% |
| Closed-circuit television (CCTV) |
8525 or 8806 |
18% |
| Electrical insulators |
8546 |
18% |
| Household or laundry, washing machines |
8450 |
18% |
| Water purifier |
8421 |
18% |
| Laptops and computers |
(8471) |
18% |
| Electric Detonators |
3603 |
18% |
| Electric padlocks and locks |
8301 |
18% |
| Machinery, plant, or laboratory equipment for heating |
8419 other than 8419 12 |
18% |
| Electric office machines such as coin-sorting machines, automatic banknote dispensers, etc. |
8472 |
18% |
| Electric motors and generators |
8501 |
18% |
| Electric generating sets and rotary converters |
8502 |
18% |
| Electro-magnets |
8505 |
18% |
| Lighting or signaling equipment such as windscreen wipers, demisters, etc. |
8512 |
18% |
| Machines for welding, soldering, etc. |
8515 |
18% |
| Industrial furnaces and ovens |
8514 |
18% |
| Electric traffic control equipment |
8530 |
18% |
| Sound-signaling or visual-signaling apparatus such as bells, sirens, etc. |
8531 |
18% |
| Electrical circuit parts such as switches, relays, etc. |
8535 or 8536 |
18% |
| Apparatus for distribution of electricity such as boards, panels, etc. |
8537 |
18% |
| Electric conductors |
8544 |
18% |
| Electric musical instruments |
9207 |
18% |
| Lighters |
9613 |
18% |
Related Read: GST on Washing Machines in 2025
Electrical and Electronics Items Subject to 28% GST
The following items attract GST at the rate of 28%:
ITEM |
HSN CODE |
GST Percentage |
| Air-conditioners |
8415 |
28% |
| Electric accumulators, including separators |
8507 |
28% |
| Monitors and projectors |
8528 |
28% |
| Electrical ignition |
8511 |
28% |
| Dish-washing machines |
8422 |
28% |
| Television sets larger than 32 inches |
8528 |
28% |
Impact of GST on the Electronics Industry
The implementation of GST has had multifold impacts on the electronics industry at large. It has streamlined the taxation procedure and reduced compliance costs for businesses. However, electronic goods are still regarded as luxury items in the Indian market.
Due to this, the GST for electrical items has been on the higher end of the tax brackets, making it difficult for business owners selling electronics to compete with inexpensive imported electrical apparatus. The higher rates of GST on electronics have increased the prices of most household electronic items and reduced the demand for them.
Impact of Electronics Item GST Rate on Business Owners
Different electronic items attract different GST on electronics rates depending on their utilization, size, capacity, etc. Business owners must navigate these GST rates on electronic items carefully to set appropriate prices and remain competitive in an ever-changing market. Proper GST registration is essential for legal operation and for claiming input tax credits, which can offset tax liabilities.
Maintaining compliance with GST regulations involves timely filing, precise record-keeping, and applying the correct rates after incorporating the GST rates. Inadequate records can hinder the ability to claim input tax credits, leading to higher costs and potential legal issues. Balancing GST incorporation into pricing strategies is crucial to avoid diminishing competitiveness while ensuring profitability and regulatory compliance.
Impact of Electronics Item GST Rate on Consumers
The impact of GST on electronics has been significant when it comes to consumers. The higher rates of GST for electrical items have led to a decrease in demand for everyday electronic items like mobile phones, television sets, etc. For example, the high GST rate of 28% applied on air-conditioners has discouraged consumers from purchasing them leading to a reduction in sales.
Related Read: GST on Electricity Supply in India
Conclusion
The application of GST on electronic items has had varied effects on the industry. While it has simplified the tax structure and made regulatory compliance easier, it has also increased the overall prices of electronics. Business owners who sell electronic products should be cognizant of these changes and take action accordingly. Otherwise, they may be unable to ensure compliance or maintain profitability.
FAQs
1. What product is 18% GST?
Mobile phones, refrigerators, television sets up to 32 inches, printers, electrical capacitors, electrical resistors, vacuum cleaners, electric smoothing irons, electric water heaters, hair dryers, electrical lamps, microphones and loudspeakers, headphones and earphones, cameras, electrical transformers, static converters, closed-circuit television (CCTV), and electrical insulators attract GST on electronics at the rate of 18%.
2. Can we claim GST on electronic items?
Yes, GST can be claimed on electronic items, subject to compliance with GST regulations and proper documentation.
3. What is the GST rate for TV?
The GST rate for television sets is 18% if the size is up to 32 inches and 28% if the size is larger than 32 inches.
4. Can we claim GST on a laptop?
Yes, GST can be claimed on laptops.
5. Can I claim GST on LED TV?
Yes, GST can be claimed on LED TVs. The rate would depend on the size of the TV: 18% for sizes up to 32 inches and 28% for sizes larger than 32 inches.
6. Which items have 28% GST?
Air-conditioners, electric accumulators (including separators), monitors and projectors, electrical ignition, dishwashing machines, and television sets larger than 32 inches.
7. How much is GST on AC?
The GST rate on air-conditioners is 28%.
8. Are there any exemptions or concessions in GST for electronic items?
Currently, there are no specific concessions or exemptions for electronic items under GST. All electronic items fall within the standard GST slabs based on their classification.
9. Can I claim a GST refund on electronic items purchased for personal use?
Generally, GST refunds are not available for personal use purchases. Refunds are typically applicable for business purchases where the input tax credit can be claimed.
10. Is there a difference in GST rates for electronic items purchased online versus offline?
No, the GST rates for electronic items are the same regardless of whether the purchase is made online or offline.
