September 01, 2025
7 mins read
Goods and Services Tax (GST) has streamlined India’s indirect tax system by subsuming multiple taxes into a single unified framework. Electronics, being a major consumer category, fall under various GST slabs depending on the product type.
Before GST, electronic items attracted different state and central taxes like VAT, excise, and octroi. GST replaced these with a unified structure, improving tax compliance and reducing cascading effects. However, due to the wide range of electronics from basic appliances to high-end gadgets, the rates vary. GST rates on electronics range from 5% to 28%, depending on the item and its classification under HSN codes.
GST on electronics is determined based on the type and usage of the product. The most common slabs applicable are 18% and 28%. Products like mobile phones, printers, and refrigerators fall under the 18% bracket, while luxury items like air conditioners, high-end TVs, and dishwashers attract 28%.
GST also applies to accessories and parts such as chargers and cables, usually at the same rate as the main item. Further, specific electronic components for manufacturing may be taxed at 12%. The tax is collected at the point of sale and passed on to the government by the seller. Businesses must use correct HSN codes to ensure proper classification.
Unified Tax Structure: GST eliminated multiple cascading taxes, simplifying tax collection for electronics manufacturers and retailers.
Improved Logistics: Input tax credit and one-nation-one-tax helped streamline supply chains, reducing warehousing costs.
Compliance Costs: While GST reduced tax complexity, it increased documentation and filing obligations for small traders.
Price Stabilisation: For some categories, overall tax incidence decreased post-GST; however, high-end products saw price hikes due to higher slabs.
Boost to Domestic Manufacturing: GST made domestic production more competitive by reducing tax overlap and allowing credit across the supply chain.
The industry had to adapt to new billing systems, updated invoices, and HSN classification, but over time, it improved transparency and tax efficiency.
Pricing Variations: Essential electronics like smartphones are taxed at 18%, while premium products like large-screen TVs and washing machines are taxed at 28%.
Effect on Buying Patterns: GST may have initially caused price hikes for specific items, but consistent rates have brought predictability.
Input Tax Credit Benefit: Retailers and sellers can now claim input credit on taxes paid during procurement, reducing overall business costs.
After-Sales Services: GST also applies to electronic repair services and extended warranties, often at 18%, adding to the final bill.
E-commerce Transactions: Uniform tax rules help streamline online electronics purchases across states.
Consumers now see GST as an embedded part of the final price tag, but understanding the slab can still help with budgeting.
Read Also - What is a GST Invoice
GST has brought clarity, consistency, and structure to the taxation of electronics in India. With different slabs applied based on product categories, both consumers and businesses benefit from simplified taxation and reduced cascading effects.
However, higher tax rates on premium electronics have affected pricing and affordability. For buyers, knowing the GST slab on products helps anticipate the final cost. For sellers and manufacturers, it is crucial to follow HSN classification, claim input credits, and remain compliant with regular filings. GST’s long-term impact continues to evolve with changes in consumer behaviour and policy adjustments.
Share this article: 
No result found
Electronic products like air conditioners, refrigerators, premium TVs, and dishwashers attract 28% GST as they are classified under the highest slab due to their non-essential or luxury status.
GST on labour charges related to electronics repair or installation is typically charged at 18%, provided it's not bundled with the supply of goods. The rate may vary depending on the contract.
Most consumer electronics, such as laptops, mobile phones, printers, and small kitchen appliances like mixers and microwave ovens, fall under the 18% GST category.
GST on LED TVs depends on screen size. TVs below 32 inches generally attract 18%, while those above 32 inches often fall under the 28% GST slab.
Registered businesses, sellers, or service providers supplying goods or services under the 18% category are authorised to charge 18% GST, as per GST registration and HSN classification.
Disclaimer :
The information on this website is provided on "AS IS" basis. Bajaj Broking (BFSL) does not warrant the accuracy of the information given herein, either expressly or impliedly, for any particular purpose and expressly disclaims any warranties of merchantability or suitability for any particular purpose. While BFSL strives to ensure accuracy, it does not guarantee the completeness, reliability, or timeliness of the information. Users are advised to independently verify details and stay updated with any changes.
The information provided on this website is for general informational purposes only and is subject to change without prior notice. BFSL shall not be responsible for any consequences arising from reliance on the information provided herein and shall not be held responsible for all or any actions that may subsequently result in any loss, damage and or liability. Interest rates, fees, and charges etc., are revised from time to time, for the latest details please refer to our Pricing page.
Neither the information, nor any opinion contained in this website constitutes a solicitation or offer by BFSL or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service.
BFSL is acting as distributor for non-broking products/ services such as IPO, Mutual Fund, Insurance, PMS, and NPS. These are not Exchange Traded Products. For more details on risk factors, terms and conditions please read the sales brochure carefully before investing.
Investments in the securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
For more disclaimer, check here : https://www.bajajbroking.in/disclaimer
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading
Open Your Free Demat Account
Enjoy low brokerage on delivery trades
|
Please Enter Mobile Number
Open Your Free Demat Account
Enjoy low brokerage on delivery trades
|
