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GST On Mobile Phones And Accessories In India -[2019 updated]

Goods and Services Tax better known as the GST is one of the primary factors which influences the economy as well as the factor which decides the technological advancement prevailing a certain area. GST on mobile phones holds much more important than it seems on the surface.

Even for the governmental bodies, dealing with the GST is rather a difficult task. It might seem increasing the GST would get more funds to the government in the form of taxes but increased GST decreases the acquisition of the goods in that particular area, making the area not only down on the technology sector but also decreased goods and services sale. The only solution to this problem is finding a perfect balance on GST amount so that both the tax returns and people do not suffer in any way.

GST On Mobile Phones In India 2019

In India, the GST on mobile is 12%. This makes it easier for the people of the remotest areas to be enrolled with technology as the tax returns are not too much. While the GST remains 12% on the mobile phone, the GST on the mobile phone accessories is 18% which is quite higher as compared to the GST on mobile phones.

Terms Associated with GST

Alongside GST, there are some similar terms associated with a tax on goods and services. Given as-

SGST ( State Goods and Services Tax )

CGST ( Central Goods and Services Tax )

IGST ( Integrated Goods and Services Tax )

Now, these may sound complicated but are not that much. Let quickly hand it to you for how it all works.

GST Tax

Buying a mobile as the end consumer

If you are buying a mobile as an end consumer then you would have to pay a Goods and Services Tax ( GST ) of 12% to be a law-abiding citizen of the state. The amount of GST on mobile is 12% but is subjected to changes. To date ( 26 May 2019 ) it’s 12%

From a dealer with-in state

If you are buying a phone from a dealer who is selling in the same state as you do then you have to pay SGST and CGST. No, you don’t have to pay 24%, you still have to pay the same 12% as you would in a GST but now that 12% GST is divided equally in CGST ( Central Goods and Services Tax ) and SGST ( State Goods and Services Tax ). All of the processes are automated and you are paying the same account but technically it’s a whole different scenario when you are buying from a dealer within the same state. For a common man, it’s not a cause of concern.

From a dealer out of state

It’s the exact opposite scenario of the previous one. If you are buying from a dealer who is from some other state, then you have to pay IGST ( Integrated Goods and Services Tax ). The total amount for IGST is also 12%. The amount of GST = IGST = ( SGST + CGST ).

The total amount to be paid by the customer remains the same ( i-e 12% ) but the terminologies differ as we dig deep into this matter. For a common man, it shouldn’t be a cause of concern.

GST On Mobile Accessories

Beside mobile phones, the GST on mobile accessories is given as

Smartphone/Feature Phone 12%
Parts for the manufacture of cell phone 12%
Mobile Charger 18%
Mobile Battery / Power bank (Lithium-ion) 18%
Telephone set 18%
Screen Protector 18%
Memory Card 18%
USB Cable 18%
Earphones 18%

Note – These are not fixed but are subjected to change as per the new Government announcements.

Summary

The GST on the mobile phone is 12%. Depending upon the various buying options it would be changed to IGST or CGST + SGST. For a common man, it is not a cause of a concern as the total amount they would be paying is the same i-e 12% but on a complex Government level, these contribute differently. The amount remains the same 12% unless some new announcement is made officially by the Government.

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