Looking for expert help with GST and income tax for CCTV camera dealers and installers India? The team at Tax Garden, based in Kondapur, Hyderabad, helps Indian SMEs stay compliant. End-to-end filings, notices, and deadline tracking, all in one place.
Key Takeaways
- CCTV cameras, DVRs and NVRs, hard disks, monitors, network switches and cables are all 18% GST from 22 September 2025 (Notification 9/2025-CT(Rate), Schedule II).
- Installation and AMC service is also 18% (Notification 11/2017-CT(Rate), S. No. 25), so a camera-plus-installation invoice is 18% on the full value.
- If you charge for installation, GST registration starts at Rs 20 lakh turnover. Telangana dealers start at Rs 20 lakh even if they only sell goods.
- Composition at 1% of turnover works only if service income stays within 10% of last year's turnover or Rs 5 lakh, and you sell only within your State.
- Under Section 44AD, deemed profit is 6% of digital receipts and 8% of the rest, for turnover up to Rs 2 crore (Rs 3 crore if cash is within 5%).
What is the GST rate on CCTV cameras and installation in India? CCTV cameras are taxed at 18% GST under heading 8525 (Notification 9/2025-Central Tax (Rate), Schedule II, S. No. 497, in force from 22 September 2025). DVRs, NVRs, hard disks and cables are also 18%, and installation service is 18% under heading 9987. A complete supply-and-install job is billed at 18% on its full value.
Most CCTV businesses start as a counter that sells camera kits and grow into a team that fits systems in shops, apartments, schools and factories, then signs annual maintenance contracts (AMCs). The tax questions shift as you grow: which rate goes on each line, when you must register, whether composition still makes sense once installation becomes a big share of revenue, and what your corporate clients deduct as TDS. This guide answers each one for FY 2025-26 (AY 2026-27), with the matching sections of the Income-tax Act 2025 that apply from 1 April 2026. If you also sell TVs and appliances, our GST guide for electronics shops covers those items.
Which GST rate goes on each item in a CCTV kit?
Every item you'd normally put on a CCTV quotation sits in Schedule II of Notification 9/2025-Central Tax (Rate). That schedule levies 9% CGST, matched by 9% SGST, so 18% for a sale within your State and 18% IGST for a sale to another State.
Comparison
GST on CCTV Equipment and Services (from 22 September 2025)
| What you supply | HSN / SAC and entry | GST |
|---|---|---|
| CCTV cameras (dome, bullet, IP, PTZ) | 8525, Sch II S. No. 497 | 18% |
| DVR and NVR recorders | 8521, Sch II S. No. 493 | 18% |
| Hard disks and other computer storage units | 8471, Sch II S. No. 456 | 18% |
| Memory cards and SSD storage media | 8523, Sch II S. No. 495 | 18% |
| Monitors for viewing footage | 8528, Sch II S. No. 500 | 18% |
| PoE switches and routers | 8517, Sch II S. No. 490 | 18% |
| Power supplies and adapters | 8504, Sch II S. No. 477 | 18% |
| Coaxial, CAT6 and power cable | 8544, Sch II S. No. 516 | 18% |
| Burglar and fire alarm panels | 8531, Sch II S. No. 503 | 18% |
| Installation, repair and AMC service | 9987, Notif 11/2017 S. No. 25 | 18% |
Source: Notification 9/2025-Central Tax (Rate), Schedule II (9% CGST), in force 22 September 2025, as amended up to 01/2026-CT(R); Notification 11/2017-Central Tax (Rate), S. No. 25
One rate makes the composite-supply question easy. When you sell cameras and fit them in the same job, that's a composite supply. Section 8(a) of the CGST Act taxes it at the rate of the principal supply. Because the goods and the installation are both 18%, you don't have to argue about which one is principal. The full invoice is 18%.
Say you fit 8 cameras in a small office. You quote Rs 50,000 before tax:
| Line | Value |
|---|---|
| 8 IP cameras at Rs 2,500 | Rs 20,000 |
| 8-channel NVR | Rs 9,000 |
| 2 TB hard disk | Rs 5,500 |
| CAT6 cable, connectors and conduit | Rs 4,500 |
| 8-port PoE switch | Rs 4,000 |
| Installation and configuration | Rs 7,000 |
| Taxable value | Rs 50,000 |
| CGST 9% + SGST 9% | Rs 4,500 + Rs 4,500 |
| Invoice total | Rs 59,000 |
If the office is in another State, you charge IGST of Rs 9,000 instead. Either way, show the installation line separately. Hiding labour inside the camera price doesn't change the tax, and a separate line helps a corporate client work out its TDS.
AMCs. An annual maintenance contract is a maintenance and repair service under heading 9987, so 18%. If the contract includes replacement parts, those are 18% goods too, and the bill stays at 18%.
When does a CCTV dealer need GST registration?
The basic limit is Rs 20 lakh of aggregate turnover in a financial year, or Rs 10 lakh in a special category State that hasn't raised it (Section 22(1), CGST Act).
A higher Rs 40 lakh limit exists, but only for a person "engaged in exclusive supply of goods" (Notification 10/2019-Central Tax). Two catches apply to CCTV businesses:
- Installation and AMCs are services. Once you bill for them, you're no longer an exclusive goods supplier, and Rs 20 lakh applies.
- Telangana didn't adopt the Rs 40 lakh limit. The notification excludes intra-State supplies in Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand. A Hyderabad shop that only sells camera kits still registers at Rs 20 lakh.
At Rs 50,000 a job, you cross Rs 20 lakh at about 40 jobs a year. Apply within 30 days of crossing the limit. Many dealers register earlier, because offices, builders and schools want a GSTIN on the invoice so they can claim input tax credit (ITC). Our GST registration service handles the application.
Should a CCTV dealer choose composition?
Composition lets a small trader pay a flat 1% of turnover (0.5% CGST plus 0.5% SGST under Rule 7, CGST Rules) instead of 18% less ITC. You qualify if:
- Previous-year aggregate turnover was Rs 1.5 crore or less (Notification 14/2019-Central Tax), or Rs 75 lakh in the eight States listed in it.
- Your services, meaning installation, repairs and AMCs, stay within 10% of last year's turnover in the State or Rs 5 lakh, whichever is higher (second proviso to Section 10(1)).
- You make no inter-State outward supply (Section 10(2)(c)). One kit shipped across the border ends your eligibility.
- You don't sell through an e-commerce operator that collects tax at source (Section 10(2)(d)).
The service cap is where most installers fall out. Take a dealer with Rs 60 lakh of turnover last year. The cap is the higher of Rs 6 lakh (10%) and Rs 5 lakh, so Rs 6 lakh. If installation and AMC income this year reaches Rs 9 lakh, the dealer can't stay in composition.
Even when you qualify, check your customers. A composition dealer issues a bill of supply, charges no GST and claims no ITC. Business clients get no credit on your bill, so a dealer who mostly sells to offices and factories often loses orders to a regular dealer. A shop selling to households is where composition can work. Our composition scheme guide covers the other conditions.
Step-by-Step Guide
GST Setup for a CCTV Dealer or Installer
Check the right threshold
Rs 20 lakh if you bill installation or AMCs, or if you're in Telangana. Rs 40 lakh applies only to goods-only sellers in States that adopted it.
Pick regular GST or composition
Composition at 1% needs turnover up to Rs 1.5 crore, no inter-State sales, and services within 10% of last year's turnover or Rs 5 lakh.
Bill at 18%
Cameras, recorders, storage, cables and installation are all 18%. Show installation as a separate line.
Generate e-way bills
For a consignment value above Rs 50,000, file Part A of EWB-01 before the goods leave your shop (Rule 138(1), CGST Rules).
File returns
GSTR-1 and GSTR-3B monthly or quarterly on regular GST; CMP-08 by the 18th after each quarter and GSTR-4 annually on composition (Rule 62).
Source: Sections 10 and 22, CGST Act; Rules 7, 62 and 138, CGST Rules; Notifications 10/2019 and 14/2019-Central Tax
E-way bills. A 16-camera job with recorders and cabling easily passes Rs 50,000. A registered person causing movement of goods above that consignment value must file Part A of Form GST EWB-01 before the goods move (Rule 138(1), CGST Rules). Some States set their own limits for movement within the State; our state-wise e-way bill guide lists them. Our GST return filing service reconciles your purchase ITC with GSTR-2B each month.
How is a CCTV dealer's income taxed for FY 2025-26?
Presumptive tax under Section 44AD. A resident individual, HUF or partnership firm (not an LLP) can declare profit on a presumptive basis if turnover is up to Rs 2 crore, or up to Rs 3 crore where cash receipts are within 5% of turnover (Section 44AD, Income-tax Act 1961). Deemed profit is 6% of receipts by account payee cheque, bank transfer or other prescribed electronic mode, and 8% of the rest. From tax year 2026-27 the same rule is Section 58(2), Table S. No. 1, of the Income-tax Act 2025. Our Section 44AD guide has the detail.
Example 1 (new regime): turnover Rs 45 lakh, of which Rs 40.5 lakh by UPI and bank transfer and Rs 4.5 lakh in cash.
- Deemed profit: 6% of Rs 40,50,000 (Rs 2,43,000) plus 8% of Rs 4,50,000 (Rs 36,000), so Rs 2,79,000.
- That's below Rs 4 lakh, the nil band under Section 115BAC(1A). Tax: nil, if this is the only income.
Example 2: turnover Rs 2.5 crore, with Rs 10 lakh (4%) in cash. Cash is within 5%, so the Rs 3 crore limit applies.
- Deemed profit: 6% of Rs 2,40,00,000 (Rs 14,40,000) plus 8% of Rs 10,00,000 (Rs 80,000), so Rs 15,20,000.
- Tax: Rs 20,000 (Rs 4-8 lakh at 5%) plus Rs 40,000 (Rs 8-12 lakh at 10%) plus Rs 48,000 (Rs 3,20,000 at 15%), so Rs 1,08,000. Income is above Rs 12 lakh, so there's no Section 87A rebate, and the marginal relief doesn't help because the tax is less than the Rs 3,20,000 excess over Rs 12 lakh.
- With 4% cess (Rs 4,320), the total is Rs 1,12,320.
Watch your real margin. Camera trading margins can be thin, especially on large tenders. If your books show less than 6%, 44AD may tax you on profit you didn't make. And if you declare 44AD one year and a lower profit in any of the next five, you lose 44AD for five years (Section 44AD(4)), with books and an audit required while your income is above the basic exemption limit (Section 44AD(5)). Our ITR filing service compares the two before you file.
What TDS do CCTV dealers face?
On what you receive. Households don't deduct. Business clients might, and they don't all read a CCTV bill the same way:
- Contract work (Section 194C): a company, firm, trust or society paying you for work under a contract deducts 1% if you're an individual or HUF and 2% otherwise, once a single bill exceeds Rs 30,000 or the year's total exceeds Rs 1 lakh. The definition of "work" excludes supplying a product to the customer's specification from material bought from someone else, so many clients deduct only on the installation line, or not at all on the equipment.
- Technical services (Section 194J): some clients treat AMC or remote monitoring fees as fees for technical services and deduct 2% above Rs 50,000 a year.
- Purchase of goods (Section 194Q): a buyer with turnover above Rs 10 crore last year deducts 0.1% on purchases from you above Rs 50 lakh in the year.
From 1 April 2026 these sit in Section 393(1) of the Income-tax Act 2025: Table S. No. 6(i) for contractors, 6(iii) for technical services and 8(ii) for purchase of goods. Whatever a client deducts, check your Form 26AS each quarter and claim the credit in your return. Our guides on Section 194C and Section 194J explain each section.
On what you pay. If you hire freelance technicians to fit cameras, you may have to deduct TDS yourself. Under Section 194C, a firm or company always counts as a payer. An individual or HUF counts only if business turnover in the previous year was above Rs 1 crore. Once you're a payer, deduct 1% on a freelance technician's bill above Rs 30,000, or once your payments to that technician cross Rs 1 lakh in the year. Our TDS filing service files the quarterly returns.
Common mistakes CCTV dealers make
- Using the Rs 40 lakh limit while billing installation. Once you charge for installation or AMCs, Rs 20 lakh applies. In Telangana it applies to everyone.
- Staying in composition after installation grows. Services above 10% of last year's turnover or Rs 5 lakh end your eligibility.
- Shipping one kit to another State on composition. Any inter-State outward supply takes you out of the scheme.
- Moving a big job's stock without an e-way bill. A mid-size installation crosses Rs 50,000 quickly.
- Ignoring TDS in Form 26AS. Corporate clients often deduct 1% or 2%. If you don't claim it, you pay that tax twice.
How Tax Garden helps CCTV dealers and installers
We register you for GST through our GST registration service, set up invoices with the installation line shown separately, and file GSTR-1 and GSTR-3B with your ITC matched through our GST return filing service. At year end we prepare your return under Section 44AD or on actual profit, with every TDS credit from Form 26AS claimed, through our ITR filing service.
