HSN Code for Electrical Items: How the GST Rate is Determined

Under the GST framework, electronics and electrical equipment are subject to taxation just like other commodities and services. The electronics sector and its constituent parts have been affected differently by the imposition of this tax and the subsequent absorption of all other regimes. Both the producers and the buyers of electronics should be aware of the consequences of the GST to maximise its applicability. In this article, we will highlight the HSN codes applicable to different electrical items in India.

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Table of content

HSN Code for Electrical Items

Conclusion

Most Asked Questions

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HSN Code for Electrical Items

Every good has an HSN code, which is a unique number assigned to it to help it identify itself. The HSN code for electrical goods consists of six numbers, which might begin with 3, 6, 8, or 9. Check the following table for HSN code and GST rates for different items.

Conclusion

For a considerable amount of time, the Indian consumer electronics sector has supported reducing the GST on electrical goods and eliminating the import tax on semi-finished electrical components. The reason for this is that the entire electronics sector, particularly consumer durables, has been mostly stagnant as a result of factors such as rising customs charges, fluctuations in the price of commodities and foreign currencies, the influence on the world economy, etc. Furthermore, imports of inexpensive electronic components present a serious threat to Indian suppliers. At this point, if the government creates regulations to help reduce the cost of inputs needed to build components, the domestic electronics industry stands to gain greatly.

FAQ

Q1. Is GST applicable to electronic products and devices?

Yes, all electronic goods and equipment, including computers, televisions, refrigerators, washing machines, and other home appliances, are subject to GST.

Q2. What is the GST rate on consumer electronics?

The Indian government imposes a Goods and Services Tax (GST) that varies based on the kind of good or service. Many electrical and electronic devices are subject to the 18% tax slab at current rates. However, it may vary for some appliances.

Q3. What is the GST rate on industrial electronics?

Transmission, distribution, and associated electronic products used in industries are taxed at a rate of 18%.

Q4. What is the GST on AC?

The GST rate  for luxury products is 28%. The GST on air conditioners has been set at 28% because they are regarded as luxury goods.

Q5. What is GST on refrigerators?

In India, an 18% Goods and Services Tax (GST) is applied to refrigerators. As a result of the government's designation of refrigerators as necessary appliances that are subject to low taxes for both makers and customers, this tax rate is classified as standard products.

Q6. Which electronic items have a GST of 12%?

Both new and used mobile phones are subject to a 12% GST tax rate under the new GST tax structure.

Q7. How does GST impact the pricing of electronic products for consumers?

Certain electronic devices have seen price increases as a result of the introduction of the Goods and Services Tax (GST), especially those that were previously subject to a lower tax rate. For instance, in 2019 the GST rate on mobile phones was raised from 15% to 18%, resulting in a rise in the cost of mobile phones.

Q8. How does GST impact manufacturers and sellers?

The makers and retailers of electronic goods have been greatly impacted by the introduction of GST. In order to comply with the new tax framework, they have had to modify their systems and procedures. Furthermore, their profit margins have been impacted by the increased GST rates on certain electronic products.