GST on Electronics — Mobile, Laptop, AC, Refrigerator Rates 2025

Mobile phones and smartphones attract GST at 18% in India. This rate applies uniformly to all categories of mobile phones — basic feature phones, budget Android smartphones, mid-range devices, and premium flagship smartphones including Apple iPhone, Samsung Galaxy, and other premium brands. The HSN code for mobile phones is 8517 and the GST rate was revised upward from 12% to 18% in 2020 to align with the broader electronics category.nnMobile phone accessories also attract various GST rates. Chargers and adapters for mobile phones are at 18%. Earphones and headphones are at 18%. Mobile covers and protective cases in plastic or silicon are at 12% or 18% depending on material. Screen protectors are at 18%. Power banks are at 18%. Battery packs for mobile phones are at 28% as spare batteries for portable devices.nnFor businesses purchasing mobile phones as business assets, Input Tax Credit (ITC) is available on the GST paid provided the purchase is for business purposes and the phone is not for personal use by employees. Under Section 17(5)(g) of the CGST Act, ITC is blocked for goods used for personal consumption. A phone purchased exclusively for business communication, field staff operations, or as a demonstration device qualifies for ITC. Mixed-use phones — where both personal and business use occur — require proportionate ITC claims.

Home appliances attract varying GST rates depending on their category. Air conditioners — split, window, and cassette types — attract GST at 28%. This high rate reflects the luxury classification of air conditioning in the Indian GST framework. The 28% rate applies to both residential and commercial AC units. Parts and components for AC repair and replacement such as compressors, condensers, and cooling coils also attract 28% GST.nnRefrigerators attract GST at 18%. This includes single-door, double-door, side-by-side, and all other types of refrigerators for both household and commercial use. Washing machines — both fully automatic and semi-automatic — also attract 18% GST. Dishwashers attract 18%. Microwave ovens are at 18%. Induction cooktops and electric cookers are at 18%.nnFor LED televisions, the GST rate depends on screen size. LED TVs and monitors with screen size up to 32 inches attract 18% GST. LED TVs with screen size above 32 inches attract 28% GST. This threshold-based differential was introduced to keep smaller TVs more affordable while applying a higher rate on larger luxury screens. Smart TVs regardless of screen size follow the same size-based rate structure — a 55-inch Smart TV attracts 28% and a 24-inch Smart TV attracts 18%.

Digital cameras — DSLR, mirrorless, and compact cameras — attract 18% GST under HSN code 8525. Camera accessories including lenses, tripods, camera bags, and memory cards for cameras attract varying rates. Camera lenses as optical elements are at 12%. Camera memory cards (SD cards, CF cards) are at 18%. Tripods and camera stands are at 18%. Drone cameras attract 18% GST while drone operators providing aerial photography services charge 18% GST on their service fees.nnProfessional audio equipment — amplifiers, mixing consoles, professional microphones, studio monitors, and recording equipment — attracts 18% GST. Consumer audio products including home theatre systems, soundbars, Bluetooth speakers, and earbuds are at 18%. Musical instruments are taxed separately — Indian musical instruments like tabla, sitar, and veena attract 12% while electronic musical instruments and keyboards attract 18%.nnIT networking equipment — routers, switches, network cables, and modems — attracts 18% GST. Wi-Fi routers for home and office use are at 18%. External hard drives and solid state drives (SSDs) are at 18%. USB storage devices (pen drives) are at 18%. Optical storage media (CDs, DVDs, Blu-ray discs) attract 18%. Server hardware attracts 18% GST. For IT companies and businesses making substantial investments in hardware, the ITC on all these purchases is available provided the purchases are for business operations.nnFor businesses in the media, photography, and advertising industry, electronics represent a significant capital investment. The GST paid on cameras, audio equipment, and IT peripherals qualifies for ITC when these assets are used for producing taxable output — photography services, video production, advertising content, and related services all attract 18% GST and the ITC chain is intact. Studios and production houses routinely claim ITC on high-value camera equipment purchases, reducing their effective acquisition cost by 18%. The ITC is credited to the Electronic Credit Ledger and offset against output GST on service invoices raised to clients.

Electric vehicles represent a special and significantly preferential GST category. All categories of electric vehicles — electric two-wheelers (electric scooters, electric motorcycles), electric three-wheelers (e-rickshaws, electric auto-rickshaws), and electric four-wheelers (electric cars, electric SUVs, electric vans) — attract only 5% GST regardless of price, segment, or battery capacity.nnThis 5% rate creates a substantial tax advantage for EV buyers compared to conventional vehicle buyers. A petrol hatchback attracts 28% GST plus 1% cess (total 29% for small cars). An equivalent electric hatchback attracts only 5% GST. On a Rs.10 lakh vehicle, the GST difference alone is Rs.2,40,000 (Rs.2,90,000 on conventional vs Rs.50,000 on EV) — a significant incentive that complements the FAME-II government subsidy scheme.nnEV-related accessories and infrastructure also benefit from low GST. EV charging equipment — both slow chargers for home use and fast chargers for commercial charging stations — attracts 5% GST. EV charging services — the electricity delivered through a charging station to an EV — attract 5% GST. Lithium-ion batteries, which are the core component of EVs, attract 18% GST when sold separately — this is a notable cost for EV fleet operators and battery swap networks who need to procure batteries independently of vehicles.

Businesses purchasing electronics for genuine business operations can claim Input Tax Credit on the 18% or 28% GST paid. The principle is straightforward: electronics purchased and used exclusively for business purposes qualify for full ITC. Electronics purchased and used exclusively for personal consumption or for employee personal use are blocked under Section 17(5)(g) of the CGST Act.nnFor mixed-use electronics — devices used partly for business and partly personally — ITC must be apportioned. The CGST Rules do not provide a specific formula for electronics apportionment, so businesses typically use a time-based or purpose-based reasonable allocation. The safest approach for GST compliance is to maintain business-use electronics separately from personal devices and ensure invoices are in the company's name with GSTIN for all business electronics purchases.nnElectronics used in the course of providing taxable GST services are clearly eligible for ITC: an IT company buying servers qualifies fully; a media company buying cameras qualifies; a BPO buying computers qualifies. Electronics purchased for resale (electronics traders) are fully eligible for ITC as stock-in-trade. Electronics capitalised as fixed assets — computers, servers, manufacturing equipment — are eligible for ITC with the credit credited to the Electronic Credit Ledger and available for offset against output tax liability over time.nnFor electronics retailers and distributors, ITC availability is straightforward — all electronics purchased as stock-in-trade for resale carry full ITC. The retailer claims 18% ITC on purchase from distributor and charges 18% GST on sale to customer. The net position is ITC on purchase offset against output tax on sales — only the value-added margin attracts net GST. Electronics e-commerce sellers registered on platforms like Amazon or Flipkart must also reconcile the 1% TCS collected by the platform against their own GST output liability, claiming the TCS as a credit in their Electronic Cash Ledger.