Table of Contents
One. GST Rates on Electronics After GST 2.0 Two. HSN Codes for Mobile Phones, Laptops and Electronics Three. What Changed Under GST 2.0 (September 22, 2025) Four. GST on Mobile Accessories and Peripherals Five. Intra-State vs Inter-State GST on Electronics Six. Input Tax Credit on Electronics for Businesses Seven. E-Invoicing for Electronics Dealers Eight. Composition Scheme Limitations for Electronics Sellers Nine. Common GST Classification Mistakes in Electronics Ten. Frequently Asked Questions
Key Takeaways
Mobile phones attract 18% GST under HSN 8517 regardless of price. The same rate applies whether the phone costs Rs 6,000 or Rs 1,50,000. There is no concessional rate for budget handsets.
Laptops, desktops, tablets and servers all fall under HSN 8471 at 18% GST. Computer parts and accessories are classified under HSN 8473 at the same 18% rate.
GST 2.0, effective September 22, 2025, reduced the four-slab structure (5%, 12%, 18%, 28%) to two slabs (5% and 18%). Televisions above 32 inches, air conditioners, refrigerators and washing machines moved from 28% to 18%.
Businesses purchasing electronics for office use can claim full input tax credit under Section 16 of the CGST Act, subject to four conditions: possession of a valid tax invoice, actual receipt of goods, GST deposited by the supplier, and filing of the return.
E-invoicing is mandatory for electronics dealers with aggregate turnover exceeding Rs 5 crore.
Whether you are buying a smartphone for personal use, stocking inventory for a retail electronics shop, or procuring laptops for your company, GST applies at every stage. The rate structure for electronics is straightforward, but the classification rules, ITC conditions, and GST 2.0 changes have practical implications for pricing and compliance.
This guide covers every GST rate, HSN code, and compliance rule that applies to mobile phones, laptops, and consumer electronics in India as of 2026.
GST Rates on Electronics After GST 2.0
Tax Rate Chart
GST Rates on Electronics (2026)
Post GST 2.0 effective September 22, 2025
Mobile Phones (all price points)
HSN 8517: smartphones, feature phones, satellite phones
Laptops, Desktops, Tablets
HSN 8471: portable and stationary computers
Printers (laser, inkjet, dot matrix)
HSN 8443: printers and multifunction devices
Televisions (all sizes, post GST 2.0)
HSN 8528: TVs above 32 inches reduced from 28% to 18%
ACs, Refrigerators, Washing Machines
Reduced from 28% to 18% under GST 2.0
Electric Vehicles
HSN 8703: no compensation cess
Solar Panels and Renewable Energy Devices
Concessional rate for green energy products
Source: Notification No. 01/2017-Central Tax (Rate) as amended; GST 2.0 rate rationalization effective 22-09-2025; 56th GST Council Meeting (September 3, 2025)
The 18% rate is a flat rate. Unlike hotel accommodation or restaurant services, there is no tiered pricing based on the value of the product. A Rs 6,000 feature phone and a Rs 1,50,000 flagship smartphone both attract 18% GST.
Before GST (pre-July 2017), mobile phones attracted a combined tax burden of approximately 13-14% (VAT plus excise duty). The initial GST rate was set at 12% in July 2017, which was increased to 18% effective April 1, 2020, following the 39th GST Council meeting recommendation.
HSN Codes for Mobile Phones, Laptops and Electronics
Correct HSN classification is critical for invoice compliance, ITC matching, and GSTR-1 reporting. Electronics fall under Chapters 84 and 85 of the Customs Tariff.
HSN 8517: Telephone sets, including smartphones
This covers all mobile phones (smartphones, feature phones, satellite phones), landline telephone sets, and VoIP equipment. For invoicing, use the 8-digit HSN code if your turnover exceeds Rs 5 crore: 8517 1211 (smartphones), 8517 1219 (other mobile phones), 8517 1800 (other telephone sets).
HSN 8471: Automatic data processing machines (computers)
This covers laptops, desktops, tablets, servers, and workstations. Sub-headings: 8471 3010 (laptops and notebooks), 8471 4110 (desktops), 8471 3020 (tablets with processing capability).
HSN 8443: Printers and multifunction devices
Laser printers, inkjet printers, dot matrix printers, and multifunction devices (print, scan, copy) fall here. Sub-heading 8443 3100 covers machines that perform two or more printing, copying, or facsimile functions.
HSN 8473: Parts and accessories for computers
Keyboards, mice, motherboards, RAM, hard drives, SSDs, graphics cards, power supplies, and other internal computer components are classified here at 18% GST.
HSN 8528: Television receivers
All televisions, monitors, and projectors. Post GST 2.0, TVs of all sizes are taxed at 18%. Previously, TVs above 32 inches attracted 28%.
For invoicing purposes, dealers with aggregate turnover up to Rs 5 crore must mention at least a 4-digit HSN code. Dealers with turnover above Rs 5 crore must use a 6-digit HSN code. The 8-digit code is recommended for accuracy and to avoid classification disputes.
What Changed Under GST 2.0 (September 22, 2025)
The 56th GST Council meeting, held on September 3, 2025, recommended a comprehensive rate rationalization that reduced the number of GST slabs from four (5%, 12%, 18%, 28%) to two (5% and 18%). The CBIC notified these changes effective September 22, 2025.
Impact on electronics:
Televisions above 32 inches: reduced from 28% to 18%. This was one of the most significant changes for consumer electronics retailers, as large-screen TVs (the fastest-growing segment) saw a 10 percentage point reduction.
Air conditioners: reduced from 28% to 18%. This applies to all types, including split ACs, window ACs, and inverter ACs.
Refrigerators: reduced from 28% to 18%. All domestic and commercial refrigerators, freezers, and cooling appliances fall under the reduced rate.
Washing machines: reduced from 28% to 18%. Both fully automatic and semi-automatic washing machines are covered.
What did not change for electronics:
Mobile phones, laptops, computers, and printers were already at 18% before GST 2.0. Their rates remained unchanged. The 12% slab (which covered items like set-top boxes and some telecom equipment) was abolished, and most items in that bracket were absorbed into the 18% slab.
Transition provisions: Dealers holding inventory purchased at 28% GST before September 22, 2025, were not entitled to automatic ITC adjustments. The ITC already claimed on those purchases remained valid. However, the output tax liability on sales after September 22 was calculated at 18%, resulting in a natural margin benefit for dealers with pre-existing 28% inventory.
GST on Mobile Accessories and Peripherals
Tax Rate Chart
GST Rates on Mobile and Computer Accessories (2026)
All accessories attract 18% GST under various HSN codes
Mobile Chargers and Adapters
HSN 8504: electrical transformers and power supplies
Earphones, Headphones, Bluetooth Speakers
HSN 8518: microphones, loudspeakers, headphones
Cables (USB, HDMI, Ethernet, Lightning)
HSN 8544: insulated wire, cable, and connectors
Mobile Covers and Screen Protectors
HSN 3926: articles of plastics
Computer Keyboards, Mice, Webcams
HSN 8471: input/output units for computers
External Hard Drives, Pen Drives
HSN 8471: storage units for data processing
Power Banks
HSN 8507: electric accumulators
Smartwatches and Fitness Bands
HSN 9102: wrist watches, electronic
Source: Notification No. 01/2017-Central Tax (Rate) as amended; Customs Tariff Act, 1975 (First Schedule)
A common misconception among retailers is that phone accessories attract a different GST rate than the phone itself. All accessories listed above attract 18% GST. The HSN code varies by product type, but the rate is uniform.
Mobile covers and cases: These are classified under HSN 3926 (articles of plastics) at 18%, not under HSN 8517 (telephone parts). If the cover is made of leather, it falls under HSN 4205 (articles of leather) at 18%. The material determines the HSN code, not the end use.
Tempered glass screen protectors: Classified under HSN 7007 (safety glass) at 18%.
Memory cards and SIM card trays: HSN 8523 (prepared unrecorded media) at 18%.
Intra-State vs Inter-State GST on Electronics
The 18% GST on electronics is split differently depending on whether the transaction is within the same state or across state borders.
Intra-state supply (buyer and seller in the same state): 9% CGST + 9% SGST = 18% total. Both tax components are deposited in separate heads. CGST goes to the central government; SGST goes to the state government.
Inter-state supply (buyer and seller in different states): 18% IGST. A single tax component deposited to the central government, which then settles amounts with the destination state.
Practical example: A Delhi-based electronics retailer sells a laptop worth Rs 60,000 (before GST) to a customer in Delhi. The invoice shows Rs 5,400 CGST and Rs 5,400 SGST, totalling Rs 10,800 GST (18%). If the same retailer sells the laptop to a buyer in Haryana, the invoice shows Rs 10,800 IGST (18%).
For e-commerce sales: When an electronics seller on Amazon, Flipkart, or any e-commerce platform ships products to buyers in other states, the supply is inter-state. IGST applies. The place of supply for goods is where the goods are delivered, not where the seller is located (Section 10 of the IGST Act, 2017).
Input Tax Credit on Electronics for Businesses
Businesses purchasing electronics (laptops, phones, printers, networking equipment) for official use can claim input tax credit on the GST paid. This reduces the effective cost of procurement significantly.
Section 16 conditions for claiming ITC:
The buyer must possess a valid tax invoice or debit note issued by the supplier.
The buyer must have actually received the goods.
The supplier must have deposited the GST collected to the government.
The buyer must have filed the relevant return (GSTR-3B).
Blocked credits under Section 17(5): ITC is not available on electronics purchased for personal use by employees, partners, or directors. A laptop purchased for the company's accounting department is eligible for ITC. A laptop gifted to an employee as a personal reward is not.
ITC on mobile phones for employees: If a company purchases mobile phones for employees for official use and the phones remain company assets, ITC is available. If the company reimburses employees for personal phone purchases, no ITC can be claimed.
Depreciation and ITC interaction: Under Section 16(3) of the CGST Act, if a business claims depreciation on the tax component of a capital asset (including electronics), ITC cannot be claimed on the same asset. Choose one or the other: claim the GST as ITC in your GST return, or include it in the asset cost and claim depreciation over its useful life under the Income Tax Act.
ITC matching and GSTR-2B: From 2026 onwards, ITC on electronics purchases is auto-populated in GSTR-2B based on the supplier's GSTR-1 filing. Any mismatch between your purchase register and GSTR-2B should be reconciled before filing GSTR-3B. Under the ITC hard-locking provisions, credit not reflected in GSTR-2B cannot be claimed beyond the tolerance threshold.
E-Invoicing for Electronics Dealers
E-invoicing is mandatory for businesses (including electronics manufacturers, wholesalers, and retailers) with aggregate annual turnover exceeding Rs 5 crore. This threshold was lowered from Rs 10 crore effective August 1, 2023.
What e-invoicing requires:
Every B2B invoice must be reported to the Invoice Registration Portal (IRP) before it is issued to the buyer. The IRP validates the invoice, generates a unique Invoice Reference Number (IRN), and returns a QR code that must be printed on the invoice.
For electronics dealers specifically:
HSN codes must be accurate in every invoice. A wrong HSN code on an e-invoice will cause the IRP to flag the invoice or, worse, create ITC mismatches for the buyer.
Consolidated B2C invoices (sales to end consumers) do not require e-invoicing. A retail electronics store selling a phone to a walk-in customer issues a regular tax invoice.
B2B sales to registered dealers (wholesale transactions, bulk orders to corporate buyers) require e-invoicing if the seller crosses the Rs 5 crore threshold.
Penalty for non-compliance: Failure to generate e-invoices when required attracts a penalty of Rs 10,000 per invoice or 100% of the tax due, whichever is higher, under Section 122 of the CGST Act.
Composition Scheme Limitations for Electronics Sellers
The Composition Scheme under Section 10 of the CGST Act allows small businesses with turnover up to Rs 1.5 crore to pay GST at a flat 1% rate on goods (0.5% CGST + 0.5% SGST) without claiming ITC.
Why most electronics sellers avoid it:
No ITC on purchases. Electronics is a high-value, low-margin category. A mobile phone retailer buying handsets at Rs 15,000 and selling at Rs 16,000 pays Rs 1,440 ITC-eligible GST on the purchase under the regular scheme. Under composition, the retailer pays 1% on Rs 16,000 (Rs 160) but cannot offset the Rs 1,440 GST on the purchase. The net cost is higher.
No inter-state sales. Composition dealers cannot sell to buyers outside their state. This rules out e-commerce sales on Amazon, Flipkart, or Meesho for most electronics sellers.
No supply through e-commerce operators. Section 10(2)(d) of the CGST Act bars composition dealers from supplying goods through an e-commerce operator. Since most small electronics sellers use online platforms, composition becomes impractical.
"Tax not to be collected" restriction. Composition dealers cannot charge GST separately on invoices. The 1% tax is paid from their own margins.
When composition could work: A very small neighbourhood electronics repair shop with turnover under Rs 1.5 crore, no inter-state transactions, and no online sales presence. In practice, few electronics businesses fit this profile.
Common GST Classification Mistakes in Electronics
Classifying smartwatches under HSN 8517 (telephones). Smartwatches are classified under HSN 9102 (wrist watches) at 18%, not under telephone equipment. The primary function determines classification: a smartwatch's primary function is timekeeping, even though it has communication features.
Using HSN 8471 for standalone monitors. Computer monitors sold separately (not bundled with a CPU) are classified under HSN 8528 (television receivers/monitors), not under HSN 8471 (computers).
Treating refurbished phones as second-hand goods with lower GST. Refurbished electronics attract the same 18% GST as new products. The Margin Scheme (Rule 32(5) of the CGST Rules) allows GST to be charged only on the margin (selling price minus purchase price) for second-hand goods, but only if no ITC was claimed on the original purchase. This applies to unregistered-to-registered purchases, not to dealer inventory that was originally purchased with ITC.
Mixing up HSN codes for batteries and chargers. Mobile phone batteries are classified under HSN 8506 or 8507 (primary cells and electric accumulators), while chargers fall under HSN 8504 (electrical transformers). Both attract 18%, but incorrect HSN codes create reconciliation problems.
Not reversing ITC on demo units given away. If an electronics showroom gives away demo handsets, tablets, or accessories as promotional items, the ITC claimed on those units must be reversed under Section 17(5)(h) of the CGST Act (goods disposed of by way of free samples).
Frequently Asked Questions
Q: Is GST on mobile phones 12% or 18% in 2026?
18%. The GST rate on mobile phones was increased from 12% to 18% effective April 1, 2020 (Notification No. 01/2020-Central Tax (Rate)). This rate has not changed since and remains at 18% in 2026.
Q: Does a cheaper phone attract less GST than an expensive phone?
No. GST on mobile phones is a flat 18% on the transaction value, regardless of price. A Rs 6,000 feature phone attracts Rs 1,080 GST, and a Rs 1,50,000 flagship attracts Rs 27,000 GST. Both use the same HSN code (8517) and rate.
Q: Can I claim GST refund on a phone purchased for personal use?
No. ITC is available only to registered businesses purchasing goods for business purposes. Personal purchases by individuals are not eligible for ITC or refund under GST.
Q: What is the GST on TV sets after GST 2.0?
18% on all televisions, regardless of screen size. Before September 22, 2025, TVs above 32 inches attracted 28% GST. GST 2.0 reduced this to 18%, bringing uniformity across all TV sizes.
Q: I sell electronics online through Flipkart. Do I need GST registration?
Yes. Under Section 24(ix) of the CGST Act, any person supplying goods through an e-commerce operator must register for GST, irrespective of turnover. There is no threshold exemption for e-commerce sellers.
Q: How is GST calculated on a mobile phone with MRP Rs 20,000?
The MRP is inclusive of GST. To calculate the GST component: base price = Rs 20,000 / 1.18 = Rs 16,949 (approximately). GST = Rs 20,000 minus Rs 16,949 = Rs 3,051. This splits as Rs 1,525 CGST and Rs 1,526 SGST for intra-state sales, or Rs 3,051 IGST for inter-state sales.
Q: Is there GST on second-hand or used electronics?
Yes. GST applies on the sale of used electronics. However, if the seller (a registered dealer) purchased the goods from an unregistered person and no ITC was claimed, the Margin Scheme under Rule 32(5) allows GST to be charged only on the profit margin (selling price minus purchase price), not on the full selling price.
Q: What GST rate applies to EV chargers and electric vehicle accessories?
Electric vehicles attract 5% GST (no compensation cess). However, EV chargers and charging stations are classified as electrical equipment under HSN 8504 at 18%. EV accessories (covers, mats, etc.) also attract 18% based on their material classification.
Source: Notification No. 01/2017-Central Tax (Rate) as amended by Notification No. 01/2020-Central Tax (Rate) and subsequent amendments. GST 2.0 rate rationalization recommended by the 56th GST Council Meeting (September 3, 2025), effective September 22, 2025. Customs Tariff Act, 1975 (First Schedule) for HSN classification. Sections 16, 17(5), and 10 of the CGST Act, 2017.
