Cell phones HSN Code
GST rates and HSN code for Cell phones.
| Chapter | Description | HSN Code | Rate (%) | CESS (%) | Effective Date | Rate Revision |
|---|---|---|---|---|---|---|
| Miscellaneous edible preparations | Yeasts (Active Or Inactive); Other Singlecell Micro – Organisms, Dead (But Notincluding Vaccines Of Heading 3002);Prepared Baking Powders – Inactive Yeasts, Other Single-Cell Micro-Organisms, Dead | 21022000 | 12% | – | 01/07/2017 | – |
| Yeasts (Active Or Inactive); Other Single Cell Micro-Organisms, Dead (But Not Including Vaccines Of Heading 3002); Prepared Baking Powders | 2102 | 12% | – | 01/07/2017 | – | |
| Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles | Open Cell For Television Set | 85299030 | 18% | – | 15/11/2017 | – |
| Pharmaceutical products | Cell Therapy Products | 30025100 | 12% | – | – | – |
Understanding the HSN Code for Cell Phones
Cell phones, an integral part of modern life, represent a significant category in global trade. For businesses involved in the import, manufacture, or sale of these devices in India, grasping the correct Harmonized System of Nomenclature (HSN) code and its associated Goods and Services Tax (GST) rate is crucial for seamless operations and tax compliance.
Classifying Cell Phones Under HSN
Cell phones (mobile phones) are primarily classified under Chapter 85: “Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles.”
Specifically, cell phones fall under the HSN heading:
- HSN 8517: Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network); parts thereof.
Within HSN 8517, further sub-classifications distinguish between different types of mobile phones:
- HSN 851712: Telephones for cellular networks (“mobile telephones”) or for other wireless networks.
- HSN 85171211: Mobile phones, other than push button type (which typically refers to smartphones).
- HSN 85171219: Mobile phones, push button type (referring to feature phones).
- HSN 85171300: Telephones for cellular networks, other than cordless telephones, with a display (this often specifically covers smartphones).
- HSN 85171400: Cordless telephones.
It’s important to note that the broader HSN 8517 also covers other communication apparatus and their parts.
The GST Rate for Cell Phones
As of recent revisions, the GST rate applicable to cell phones in India is:
- GST Rate: 18%
This rate became effective from April 1, 2020. Before this, the rate was 12%. This 18% GST applies to both smartphones and feature phones, irrespective of whether they are manufactured domestically or imported.
Why HSN Code Accuracy Matters
Accurate HSN code classification is vital for businesses for several reasons:
- GST Compliance: It ensures the correct GST amount is levied and paid, preventing discrepancies and potential penalties from tax authorities.
- Uniform Pricing: A consistent HSN code and GST rate across India help maintain uniform pricing for cell phones, benefitting both consumers and businesses.
- Input Tax Credit (ITC): Businesses can claim ITC on the GST paid on purchases of cell phones if they are used for business purposes, contributing to better cash flow management.
- Trade Facilitation: Correct classification simplifies customs procedures for import and export, ensuring smooth movement of goods.
It’s essential for businesses to stay updated with any changes in HSN codes or GST rates as notified by the Central Board of Indirect Taxes and Customs (CBIC) to ensure continuous compliance.
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