GST on Electronics and Home Appliances

Gst on electronic items: code table

Pages in the electronics and appliances group

Gst on electronics: what the reform changed

Before 22 September, consumer electronics were split between 18% and 28%. Air conditioners, televisions above 32 inches, dishwashers and monitors above a certain size were 28%. The reform put them all at 18%. On a split AC with a taxable value of Rs 40,000, tax fell from Rs 11,200 to Rs 7,200. Phones, laptops, fridges and washing machines were already at 18% and stayed there.

Home appliances hsn code: how to choose

Appliances are classified by what they do:

• Motor driven kitchen and household appliances (mixers, juicers): 8509.
• Heating appliances (geysers, irons, toasters, microwaves, induction): 8516.
• Cooling appliances: ACs 8415, fridges 8418, coolers 8479 60.
• Washing: 8450 for clothes, 8422 for dishes.
• Fans and chimneys: 8414.
• Audio: 8518; video and displays: 8528.

When an appliance does two jobs, its main function decides the heading. A microwave with a grill is still a microwave under 8516 50; an air purifier with a fan is a filtering apparatus under 8421, not a fan.

Electronic items gst rate for dealers and service centres

Dealers buy stock at 18% and sell at 18%, so credit flows smoothly. Authorised service centres bill repairs as services at 18% and spare parts at the part's own rate, which for most electronic parts is also 18%. Demo units and display pieces sold at a discount still carry 18% on the discounted price shown on the invoice. Stock that was bought at 28% before the reform carried extra credit, which dealers could use against their output tax at the new rate.

Electronics hsn code and electrical goods

Electronic consumer products share Chapter 85 with electrical goods such as wires, switches, motors and lights. Those are covered on the electrical items hub. Batteries, inverters and solar products sit there too.

Shared rules for electronics

• Credit: a business can claim GST on electronics used for work, such as laptops, printers and ACs in an office. Electronics bought for personal use by staff are not business inputs.
• Warranty replacements: a product or part replaced free under warranty is sent on a delivery challan. The original sale already carried GST.
• Extended warranties: sold separately, they are services at 18%.
• Repairs: repair of appliances is SAC 998715, and of computers 998713, at 18%. See repair and maintenance.
• Exchange offers: when a showroom takes an old TV or fridge against a new one, GST is charged on the full price of the new item; the old one is part payment.
• E-way bill: loads of electronics worth more than Rs 50,000 need an e-way bill when they move by road.

Showroom invoice

Online sales of electronics

Electronics sold through marketplaces carry the same 18%. The marketplace collects TCS on the seller's net sales and reports it, and the seller claims that TCS in its cash ledger. The seller remains responsible for charging the correct rate and HSN on each invoice.