Table of Contents
- GST Rates on Electronics After GST 2.0
- HSN Codes for Mobile Phones, Laptops and Electronics
- What Changed Under GST 2.0 (September 22, 2025)
- GST on Mobile Accessories and Peripherals
- Intra-State vs Inter-State GST on Electronics
- Input Tax Credit on Electronics for Businesses
- E-Invoicing for Electronics Dealers
- Composition Scheme Limitations for Electronics Sellers
- Common GST Classification Mistakes in Electronics
- 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, replaced the four-slab structure (5%, 12%, 18%, 28%) with two main slabs (5% and 18%) plus a 40% rate for a few luxury and sin goods. Televisions above 32 inches, air conditioners and dishwashers moved from 28% to 18%. Refrigerators and washing machines were already at 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.
GST applies when you buy a smartphone for personal use, stock a retail electronics shop or procure laptops for your company. 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, Dishwashers, Refrigerators, Washing Machines
ACs and dishwashers cut from 28%; fridges and washing machines were already 18%
Electric Vehicles
HSN 8703: no compensation cess
Solar Panels and Renewable Energy Devices
Concessional rate for green energy products
Source: Notification No. 9/2025-Central Tax (Rate), Schedule I (5%) and Schedule II (18%), 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. Notification 9/2025-Central Tax (Rate) covers "all goods" of heading 8517 at 18%, so the exact sub-heading does not change the rate. On invoices, use at least the 4-digit code (8517) if your turnover is up to Rs 5 crore and the 6-digit code above Rs 5 crore.
HSN 8471: Automatic data processing machines (computers)
This covers laptops, desktops, tablets, servers, and workstations, along with input units (keyboards, mice) and storage units (hard drives). Notification 9/2025-Central Tax (Rate) lists heading 8471 as a single 18% entry, so the sub-heading does not change the rate. Laptops and tablets usually fall under 8471 30 (portable machines weighing not more than 10 kg).
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
Motherboards, RAM modules, graphics cards and other parts used solely or principally with computers are classified here at 18% GST. Covers and carrying cases are excluded from this entry. Keyboards, mice and hard drives fall under 8471, solid-state drives and pen drives under 8523, and power supplies under 8504, all at 18%.
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 replaced the four slabs (5%, 12%, 18%, 28%) with two main slabs (5% and 18%) and a 40% rate for a narrow list of goods. 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.
Dishwashers: reduced from 28% to 18%.
Refrigerators and washing machines: no change. They had already been cut from 28% to 18% in July 2018 and stay at 18% (Schedule II of Notification 9/2025-Central Tax (Rate)).
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 was abolished, and items in it moved to 5% or 18% depending on the entry, so check the current rate for any former 12% item.
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 (hard drives, storage units) and 8523 (pen drives, solid-state storage)
Power Banks
HSN 8507: electric accumulators
Smartwatches and Fitness Bands
HSN 9102 or 8517 depending on primary function; 18% under either
Source: Notification No. 9/2025-Central Tax (Rate), Schedule II; 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 4202 (cases) or 4205 (other articles of leather), both 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 cards: HSN 8523 (solid-state non-volatile storage devices and smart cards) 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: ITC on electronics purchases is auto-populated in GSTR-2B based on the supplier's GSTR-1 filing. Under Section 16(2)(aa) of the CGST Act and Rule 36(4), credit can be claimed only on invoices that appear in your GSTR-2B (there has been no tolerance margin since 1 January 2022), so reconcile your purchase register with GSTR-2B before filing GSTR-3B.
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 handles 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 a handset at Rs 15,000 plus Rs 2,700 GST (18%) and selling it at Rs 16,000 plus GST would, under the regular scheme, collect Rs 2,880 from the customer and pay only Rs 180 after offsetting the Rs 2,700 credit. Under composition, the retailer cannot collect GST from the customer, pays 1% on Rs 16,000 (Rs 160) from its own pocket, and the Rs 2,700 paid on the purchase becomes a cost. The net cost is far 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.
Limited e-commerce. Since 1 October 2023 (Finance Act 2023), a composition dealer may sell goods through an e-commerce operator, but only within its own state, because inter-state supplies remain barred (Section 10(2)(c)). Sellers who ship to buyers in other states cannot use composition.
"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
Picking a smartwatch HSN code without checking the product. A smartwatch can fall under HSN 9102 (wrist watches) or HSN 8517 (communication apparatus) depending on its primary function. Both headings are taxed at 18% under Notification 9/2025-Central Tax (Rate), so the rate does not change, but use the same code your supplier and importer use so your GSTR-1 and the buyer's GSTR-2B match.
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).
Source: Notification No. 9/2025-Central Tax (Rate) (Schedule I entries for electric vehicles, EV chargers and renewable energy devices; Schedule II entries for headings 3926, 4202, 4205, 7007, 8415, 8418, 8422, 8443, 8450, 8471, 8473, 8504, 8506, 8507, 8517, 8518, 8523, 8528, 8544 and 9102), read 2026-10-23 from taxinformation.cbic.gov.in. Earlier rate history: Notification No. 01/2017-Central Tax (Rate) as amended by Notification No. 01/2020-Central Tax (Rate). 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.
