GST on mobile phones is 18% for every handset sold in India. The HSN code is 8517: smartphones go under 8517 13 00, and keypad or feature phones go under 8517 14 00. A basic keypad set and a premium flagship carry the same 18%, and that rate did not move in the 22 September rate overhaul. Many people searching for a GST cut on phones have the cuts on televisions and air conditioners in mind. Phones were not part of that change.
This guide walks through the sub-codes inside heading 8517, the items shops often bill under the wrong line (tablets, chargers, earphones, smartwatches), a sample invoice line, and the input tax credit, e-way bill and second-hand phone points a mobile dealer runs into. For other gadgets and appliances, the electronics GST guide lists every page in this group.
Mobile phones: codes and GST rates
Item / HSN / GST- Smartphone, touchscreen, any brand or price18%Same rate below and above Rs 50,000 invoice value
- Keypad or feature phone for cellular networks18%Older masters may show 8517 12 19 for push button mobiles
- Landline phone set with cordless handset18%8517 11 10 for push button type, 8517 11 90 for others
- Other telephone sets, such as corded desk phones18%8517 18 10 push button, 8517 18 90 other
- Wi-Fi router, modem, pocket hotspot device18%Apparatus that receives, converts and sends data
- Smartwatch that links to a phone for calls and data18%Not a watch under Chapter 91 when its main job is data transfer
- Handset antennas18%Parts heading for aerials and reflectors
- Other handset parts such as housings and circuit boards18%Parts sold to repair shops or assemblers
- Mobile charger or adapter18%Static converter, not 8517
- Earphones, headphones, wireless earbuds18%Audio heading, billed as a separate line
- Lithium-ion phone battery or power bank18%Battery heading, not a phone part line
- Tablet computer without a calling function18%Portable computer heading; check calling tablets case by case
Quick facts
HSN heading
8517 (Chapter 85: electrical machinery and equipment)GST rate
18%: 9% CGST + 9% SGST, or 18% IGST on a sale to another stateRate before the reform
18%, so the 22 September changes did not touch phonesOfficial entry
Schedule II entry 490, notification 9/2025-Central Tax (Rate), covering all goods of 8517Digits to print
4 digits (8517) for turnover of Rs 5 crore or less; 6 digits (8517 13 for smartphones) for larger businessesReverse charge
Not applicable; the seller charges and pays the taxCommon wrong code
8471 is for tablets and laptops; 8504 is for chargers
Mobile phone HSN code: the lines inside 8517
Heading 8517 covers telephone sets of every kind and the equipment that sends or receives voice, images and data. The first four digits stay the same for all phones. The six and eight digit lines tell a smartphone apart from a keypad handset or a landline set.
| Code | What it covers |
|---|---|
| 8517 11 10 / 8517 11 90 | Line telephone sets with cordless handsets, push button or other |
| 8517 13 00 | Smartphones |
| 8517 14 00 | Other phones for cellular or wireless networks (keypad and feature phones) |
| 8517 18 10 / 8517 18 90 | Other telephone sets, push button or other |
| 8517 62 | Routers, modems, hotspots and similar data apparatus |
| 8517 71 / 8517 79 | Antennas and other parts |
The GST portal master still carries older lines such as 8517 12 11 (mobile phones other than push button) and 8517 12 19 (push button mobiles). The current tariff splits these into 8517 13 00 and 8517 14 00. If your item master still shows 8517 12, the rate on the bill is unaffected, but moving to the current lines keeps your e-way bills and GSTR-1 summary cleaner.
Storage size, camera, 4G or 5G and brand never change the code. A touchscreen phone that runs apps is a smartphone; a phone with physical keys and basic features is 8517 14 00.
GST on mobile phones after the 22 September reform
The governing entry is number 490 of Schedule II in the rate list issued as 9/2025-Central Tax (Rate). It reads simply "all goods" of heading 8517, with no conditions attached. Every Schedule II item carries 9% central tax plus 9% state tax, which adds up to an 18% GST rate. When buyer and seller sit in one state, the 18% is split equally, half as CGST and half as SGST. When the handset is billed to a customer outside your state, charge 18% IGST instead.
Three points clear up most questions at the counter:
- No price slab. GST on mobile phones above Rs 50,000 is the same 18%. Unlike hotel rooms or garments, the phone entry has no value limit.
- No cut in the reform. Handsets paid 18% before 22 September too, and nothing changed for them afterwards. Very old rate cards may show 12%, a rate that was replaced long before the reform.
- No buyer-based relief. A student, a company and a government office all pay the same rate on the handset.
The talk-time or data pack on the phone is a service, not goods. Its tax is covered on the mobile recharge GST page.
Writing a phone sale on the tax invoice
On B2B invoices, how many HSN digits you show depends on last year's aggregate turnover. If that turnover did not cross Rs 5 crore, the four digit heading 8517 is enough. Bigger businesses need six digits, such as 8517 13 for smartphones. The full eight digit line works for everyone. The HSN digits guide explains the turnover rules in detail.
Sample B2B line for a local sale of 10 smartphones (8 GB RAM), IMEI numbers listed below the line:
| HSN | Taxable value | CGST 9% | SGST 9% | Total |
|---|---|---|---|---|
| 8517 13 00 | Rs 1,50,000 | Rs 13,500 | Rs 13,500 | Rs 1,77,000 |
Retail counters usually sell at an MRP that already includes GST. To find the tax inside such a price, multiply by 18 and divide by 118. A tax-inclusive bill of Rs 23,600 breaks into Rs 20,000 of value before tax and Rs 3,600 of GST. The GST calculator does this split for you.
Printing the IMEI on the invoice is not a GST rule, but it helps with warranty claims, theft checks and matching stock when your input credit is questioned.
Items mobile shops bill under the wrong code
A phone shop sells much more than handsets, and the extras often go out under 8517 by habit. The rate is 18% in most of these cases, yet the code still has to be right for the e-way bill and the HSN summary.
- Chargers and adapters are static converters under 8504 40, not phone parts.
- Earphones and neckbands belong to 8518 30. Covers, screen guards and cables are covered on the mobile accessories codes page.
- Power banks and spare batteries sit under 8507 60. See the battery HSN code page for other cell types.
- Tablets without a calling function are portable computers under 8471 30, the same family as the laptop HSN code. A tablet that works mainly as a phone needs a closer look at its main function.
- Smartwatches that exchange data with a phone go under 8517 62, not with wrist watches.
Input tax credit, e-way bills and used phones
Input tax credit. Phones are not on the blocked list in section 17(5). A dealer buying stock for resale takes full credit of the 18%. A business that buys phones for staff to use for work can also claim credit. A phone bought for personal or family use does not qualify.
E-way bill. Phones are high value and move in small cartons, so a consignment crosses the Rs 50,000 limit quickly. Generate the e-way bill before dispatch, matching the invoice for HSN, quantity and value. For a dispatch that never leaves your state, the threshold is fixed by your state government and can differ from the national figure, so look up the local rule.
Second-hand phones. A registered dealer in used phones who took no input credit on the purchase can pay GST only on the margin under rule 32(5) of the CGST Rules. The tax is 18% of the selling price minus the purchase price. If the margin is negative, no tax is due on that sale. Handset repairs are a service; see the repair and maintenance SAC page.
Mobile GST rate errors at the billing counter
| Error seen | Correct approach |
|---|---|
| Item master still shows 12% on phones | Change every 8517 handset line to 18% |
| Higher rate charged on a costly flagship | Use 18%; there is no price slab for phones |
| Charger bundled as a separate line under 8517 | Bill it under 8504 40 at 18% |
| IGST on a walk-in sale in your own state | Split the 18% into 9% central and 9% state tax |
| Old code 8517 12 11 on new invoices | Move to 8517 13 00 for smartphones |
If you are unsure about a gadget, search its description on the official GST portal HSN search before adding it to your billing master.
This page describes, in broad terms, how today's rate schedules treat phones; it is not advice for any particular business. A fresh notification can change any entry or rate, so check the live notification or search the official GST portal, then raise the bill. For a ruling on your own stock or trade, consult a tax professional such as a chartered accountant.
Frequently asked questions
What is the HSN code for mobile phone sales?
Mobile phones fall under heading 8517. Smartphones use 8517 13 00 and keypad or feature phones use 8517 14 00. Dealers with turnover up to Rs 5 crore may print just 8517 on B2B invoices.
Was there a GST cut on mobile phones in the reform?
No. The handset rate stood at 18% before 22 September and stands at 18% today. The reform lowered rates on items such as televisions, air conditioners and cement, but heading 8517 stayed in the 18% list.
Is GST on mobile phones above 50,000 higher?
No. The entry covers all goods of heading 8517 with no value limit. A phone billed at Rs 80,000 attracts the same 18% as a basic handset.
What is the smartphone HSN code, and what is the GST rate on a keypad phone?
Smartphones are 8517 13 00 and keypad phones are 8517 14 00. Both carry 18% GST; on a sale inside your own state, that 18% is divided into central and state tax of 9% each.
Can my business claim GST credit on a mobile phone?
Yes, when the phone is used for business, such as a handset given to a sales executive. Credit is not allowed if the phone is for personal or family use.
Do chargers and earphones take the mobile phone hsn code?
No. Chargers go under 8504 40 and earphones under 8518 30. Both are 18%, but each should appear on its own invoice line with its own code.