GST on electronics and electrical items in India has reshaped the market, with varying rates from 0% to 28%, depending on the product category. Consumer electronics like mobile phones and TVs are taxed differently from industrial electrical items like transformers and motors. Understanding the relevant HSN codes for these goods is essential for both businesses and consumers to ensure compliance and correct taxation.
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.Electrical and electronic items are taxed under five GSTslabs between 0% to 28%, depending on their category and usage. The slabs are as follows:
- 0% GST: Products promoting renewable energy, like solar power devices and solar panels.
- 5% GST: Energy-efficient items like LED lights, solar water heaters, and wind turbine parts.
- 12% GST: Basic appliances such as electric water geysers and televisions below 32 inches.
- 18% GST: Common electronics like mobile phones, laptops, refrigerators, and washing machines.
- 28% GST: Luxury and premium items, including air conditioners, dishwashers, and televisions above 32 inches.
Electrical and Electronics Items with 0% GST
| Item | HSN Code | GST Rate |
| Solar Power Devices | 8541 | 0% |
| Solar Panels | 8541 | 0% |
| Wind Energy Devices | 8502 | 0% |
| Bio-Gas Plants | 8419 | 0% |
| Renewable Energy Devices | 8541 | 0% |
Electrical and Electronics Items with 5% GST
| Item | HSN Code | GST Rate |
| LED Lights and Fixtures | 9405 | 5% |
| Solar Water Heaters | 8419 | 5% |
| Wind Turbine Components | 8503 | 5% |
| Lithium-ion Batteries for Solar Systems | 8507 | 5% |
Electrical and Electronics Items with 12% GST
| Item | HSN Code | GST Rate |
| Electric Water Geysers | 8516 | 12% |
| Televisions (up to 32 inches) | 8528 | 12% |
| Ceiling Fans | 8414 | 12% |
| Home Heating Appliances | 8516 | 12% |
Electrical and Electronics Items with 18% GST
| Item | HSN Code | GST Rate |
| Mobile Phones | 8517 | 18% |
| Laptops | 8471 | 18% |
| Refrigerators | 8418 | 18% |
| Washing Machines | 8450 | 18% |
| Microwave Ovens | 8516 | 18% |
Electrical and Electronics Items with 28% GST
| Item | HSN Code | GST Rate |
| Air Conditioners | 8415 | 28% |
| Dishwashers | 8422 | 28% |
| Televisions (above 32 inches) | 8528 | 28% |
| Premium Speakers and Audio Systems | 8518 | 28% |
| High-End Home Theaters | 8519 | 28% |
Impact of GST on the Electronics Industry
In general, the impact of GST on electronics industry has been somewhat negative over the past years. Also, an increase in tax rate by 2-3% always trickled down to the end-users.
Despite being extensively purchased by a large segment of the Indian household, electronics are treated as ‘luxury’ items in the country. Also, most items under this segment attract GST at the rate of 28%, which is predominantly reserved for the ‘Luxury goods and services’ category.
This is why leading household electronics appliances manufacturers like Godrej, Samsung, Voltas, Bajaj, etc. are unable to provide significant GST benefits to end-users. Furthermore, individuals are often in need of detailed clarification on the application of current tax deductions and exemptions extended by different states.
For instance, manufacturers based in Mumbai availed benefits under GST as they were paying Octroi at 5% post other taxes on household electronics appliances.
Experts anticipate a hike in the price of consumer electronics like refrigerators, vacuum cleaners, televisions, air-conditioners, etc. due to an increase in both tax and inflation rates. On the contrary, the impact on electrical machinery used for commercial purposes is expected to remain stable.
FAQs
Q1. Can we claim GST on electronic items?
Yes, GST can be claimed on electronic items, subject to compliance with GST regulations and proper documentation.
Q2. How to determine the GST rate for an electronic item?
Identify the item’s HSN code, which helps in determining the applicable GST rate, typically ranging from 5% to 28%
Q3. Which electronics products have 28% GST?
Luxury electronics, including air conditioners, dishwashers, and televisions above 32 inches, are taxed at 28% GST. This rate applies to premium and high-end items.
Q4. Which electronics products have 12% GST?
Electronics such as televisions up to 32 inches, electric water geysers, and ceiling fans are taxed at 12% GST. This rate applies to basic household appliances.
Q5.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.
Q6. Which electronics products have 0% GST?
Electronics products like solar power devices, solar panels, and wind energy equipment attract 0% GST. These exemptions encourage the use of renewable energy technologies.
Q7. 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.
