In India mobiles phone and mobile accessories are bought under the Goods and Services Tax (GST). Currently the GST rate on the mobile phone is 12% irrespective whether it is the smart phone or feature phone. The GST rate on all the electronic mobile accessories is as 18%. Different GST rates are applicable on other accessories.
What are criteria for the GST applicable to mobile phone purchases?
Basically in the process of the mobile phone purchases it attracts the CGST it stands for the central GST in addition SGST it stands for the state GST or UTGST means union territory GST or IGST Integrated GST that is all depend on the certain factors.
If any of you is buying a cell phone from the seller who is located in your state or in the union territory then you need to pay the CGST of 9% + SGST/UTGST of 9%. On the other hand if your mobile phone seller is located outside the state or union territory. Then let’s have an example to understand this concept; an e-commerce vendor, who will pay IGST of 18% on your each purchase.
We all know that by the micro, small and medium sized enterprises the mobile phones, smartphones and mobile accessories are sold. So have a look at the GST rate for the mobile phones, smartphone, chargers and the mobile accessories that are along with the HSN code.
Goods and Services Tax on Mobile Phone
At the time of the introduction of the GST, VAT was levied on the purchase of the mobile phone. The rate of the VAT is varied from the state to state. Under the GST, the rate of the tax on mobile phone is same across India. So the GST rate for the mobile phone is 12% and the HSN code is 8517.
It is also possible that the price of the mobile phone to become the cheaper as the GST rates are reduced because with the collection under the GST exceeding expectations.
What is SGST & CGST or IGST on Mobile Phones?
To understand this concept let’s have an example; so if you are purchasing the mobile phones as an end consumer then you need to pay GST at the rate of the 12%. On the other hand if you purchased the phone from another dealer within the same state then 12% would be divided into the SGST and CGST that is equally.
Another example is that if your mobile phone was purchased from another dealer who is out of the state, the IGST at the 12% would be applicable. During the import of mobile phones, IGST at 12% would be applicable.
How the GST Rate for the Mobile Phone products and accessories applicable with the HSN Code?
Under the Chapter 85 all the mobile phones and accessories that are related to mobile phone come in it. Therefore there are various types of the GST rate slabs are applicable that are come under the HSN chapter 85.