GST rates and HSN code for Home theatre system.
| Chapter | Description | HSN Code | Rate (%) | CESS (%) | Effective Date | Rate Revision |
|---|---|---|---|---|---|---|
| Services | Leasing Or Rental Services Concerning Televisions, Radios, Video Cassette Recorders, Projectors, Audio Systems And Related Equipment And Accessories (Home Entertainment Equipment ) | 997321 | 18% | Nil Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020. | 1/01/2019 25/01/2018 1/07/2017 | – |
| Leasing Or Rental Services Concerning Video Tapes And Disks (Home Entertainment Equipment ) | 997322 | 18% | Nil Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020. | 1/01/2019 25/01/2018 1/07/2017 | – | |
| Home Owners Associations | 999598 | 18% | Nil Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020. | 01/07/2017 | – | |
| Water Well Drilling Services And Septic System Installation Services | 995434 | 1.5/5/7.5/12/18 | Nil Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020. Provided that credit of input tax charged on goods and services has not been taken [Please refer to Explanation no. (iv)]. Provided that where the services are supplied to a Government Entity, they should have been procured by the said entity in relation to a work entrusted to it by the Central Government, State Government, Union territory or local authority, as the case may be. Provided that carpet area of the affordable residential apartments as specified in the entry in column (3) relating to this item, is not less than 50 per cent. of the total carpet area of all the apartments in the project; Provided also that for the purpose of determining whether the apartments at the time of supply of the service are affordable residential apartments covered by sub- clause (a) of clause (xvi) of paragraph 4 below or not, value of the apartments shall be the value of similar apartments booked nearest to the date of signing of the contract for supply of the service specified in the entry in column (3) relating to this item; Provided also that in case it finally turns out that the carpet area of the affordable residential apartments booked or sold before or after completion, for which gross amount actually charged was forty five lakhs rupees or less and the actual carpet area was within the limits prescribed in sub- clause (a) of clause (xvi) of paragraph 4 below, was less than 50 per cent. of the total carpet area of all the apartments in the project, the recipient of the service, that is, the promoter shall be liable to pay such amount of tax on reverse charge basis as is equal to the difference between the tax payable on the service at the applicable rate but for the rate prescribed herein and the tax actually paid at the rate prescribed herein; Provided that the central tax at the rate specified in column (4) shall be paid in cash, that is, by debiting the electronic cash ledger only; Provided also that credit of input tax charged on goods and services used in supplying the service hasnot been taken except to the extent as prescribed in Annexure I in the case of REP other than RREP and in Annexure II in the case of RREP; Provided also that the registered person shall pay, by debit in the electronic credit ledger or electronic cash ledger, an amount equivalent to the input tax credit attributable to construction in a project, time of supply of which is on or after 1st April, 2019, which shall be calculated in the manner as prescribed in the Annexure I in the case of REP other than RREP and in Annexure II in the case of RREP; Provided also that where a registered person (landowner- promoter) who transfers development right or FSI (including additional FSI) to a promoter (developer- promoter) against consideration, wholly or partly, in the form of construction of apartments,- (i) the developer- promoter shall pay tax on supply of construction of apartments to the landowner- promoter, and (ii) such landowner – promoter shall be eligible for credit of taxes charged from him by the developer promoter towards the supply of construction of apartments by developer- promoter to him, provided the landowner- promoter further supplies such apartments to his buyers before issuance of completion certificate or first occupation, whichever is earlier, and pays tax on the same which is not less than the amount of tax charged from him on construction of such apartments by the developer- promoter. Explanation. – (i) “developer- promoter” is a promoter who constructs or converts a building into apartments or develops a plot for sale, (ii) “landowner- promoter” is a promoter who transfers the land or development rights or FSI to a developer- promoter for construction of apartments and receives constructed apartments against such transferred rights and sells such apartments to his buyers independently. Provided also that eighty percent of value of input and input services, [other than services by way of grant of development rights, long term lease of land (against upfront payment in the form of premium, salami, development charges etc.) or FSI (including additional FSI), electricity, high speed diesel, motor spirit, natural gas], used in supplying the service shall be received from registered supplier only; Provided also that inputs and input services on which tax is paid on reverse charge basis shall be deemed to have been purchased from registered person; Provided also that where value of input and input services received from registered suppliers during the financial year (or part of the financial year till the date of issuance of completion certificate or first occupation of the project, whichever is earlier) falls short of the said threshold of 80 per cent., tax shall be paid by the promoter on value of input and input services comprising such shortfall at the rate of eighteen percent on reverse charge basis and all the provisions of the Central Goods and Services Tax Act, 2017 (12 of 2017) shall apply to him as if he is the person liable for paying the tax in relation to the supply of such goods or services or both; Provided also that notwithstanding anything contained herein above, where cement is received from an unregistered person, the promoter shall pay tax on supply of such cement at the applicable rates on reverse charge basis and all the provisions of the Central Goods and Services Tax Act, 2017 (12 of 2017), shall apply to him as if he is the person liable for paying the tax in relation to such supply of cement; (Please refer to the illustrations in annexure III) Explanation. – 1. The promoter shall maintain project wise account of inward supplies from registered and unregistered supplier and calculate tax payments on the shortfall at the end of the financial year and shall submit the same in the prescribed form electronically on the common portal by end of the quarter following the financial year. The tax liability on the shortfall of inward supplies from unregistered person so determined shall be added to his output tax liability in the month not later than the month of June following the end of the financial year. 2. Notwithstanding anything contained in Explanation 1 above, tax on cement received from unregistered person shall be paid in the month in which cement is received. 3. Input Tax Credit not availed shall be reported every month by reporting the same as ineligible credit in GSTR-3B [Row No. 4 (D)(2)]. Provided that in case of ongoing project, the registered person shall exercise one time option in the Form at Annexure IV to pay central tax on construction of apartments in a project at the rates as specified for item (ie) or (if), as the case may be, by the 20th of May, 2019; Provided also that where the option is not exercised in Form at annexure IV by the 20th of May, 2019, option to pay tax at the rates as applicable to item (i) or (ia) or (ib) or (ic) or (id) above, as the case may be, shall be deemed to have been exercised; Provided also that invoices for supply of the service can be issued during the period from 1st April 2019 to 20th May 2019 before exercising the option, but such invoices shall be in accordance with the option to be exercised.; | 01/04/2019 25/01/2018 13/10/2017 21/09/2017 22/08/2017 | – | |
| 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 | Electrical Machines And Apparatus Having Individual Functions, Not Specified Or Included Elsewhere In This Chapter – Other Machines And Apparatus: – Other: – Video Special Effect Equipments: Video Mixing System Or Consoles | 85438941 | 18% | – | 01/07/2017 | – |
| Radar Apparatus, Radio Navigational Aid Apparatus And Radio Remote Control Apparatus – Other: – Radio Navigational Aid Apparatus: Instrument Landing System | 85269120 | 18% | – | 15/11/2017 | – | |
| Electrical Machines And Apparatus Having Individual Functions, Not Specified Or Included Elsewhere In This Chapter – Other Machines And Apparatus — Edit Control Unit —- Computerised Editing System Controlling More Than Three Video Editing Machines | 85437041 | 18% | – | 01/07/2017 | – | |
| Video Recording Or Reproducing Apparatus, Whether Or Not Incorporating A Video Tuner Other : Video Duplicating System With Master And Slave Control | 85219010 | 18% | – | 01/07/2017 | – | |
| Electrical Machines And Apparatus Having Individual Functions, Not Specified Or Included Elsewhere In This Chapter – Other Machines And Apparatus — Audio Special Effect Equipment —- Mixing System Or Consoles | 85437022 | 18% | – | 01/07/2017 | – | |
| Electrical Machines And Apparatus Having Individual Functions, Not Specified Or Included Elsewhere In This Chapter – Other Machines And Apparatus: – Other: – Edit Control Unit: Computerised Editing System Controlling More Than Three Video Editing Machines | 85438951 | 18% | – | 01/07/2017 | – | |
| Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof | Photocopying Apparatus Incorporating An Optical System Or Of The Contact Type And Thermo-Copying Apparatus – Parts And Accessories: Sorters | 90099300 | 0 | – | 01/07/2017 | – |
| Photocopying Apparatus Incorporating An Optical System Or Of The Contact Type And Thermo-Copying Apparatus – Parts And Accessories: Paper Feeders | 90099200 | 0 | – | 01/07/2017 | – | |
| Photocopying Apparatus Incorporating An Optical System Or Of The Contact Type And Thermo-Copying Apparatus – Other Photocopying Apparatus: Incorporating An Optical System | 90092100 | 0 | – | 01/07/2017 | – | |
| Photocopying Apparatus Incorporating An Optical System Or Of The Contact Type And Thermo-Copying Apparatus – Parts And Accessories: Automatic Document Feeders | 90099100 | 0 | – | 01/07/2017 | – | |
| Photocopying Apparatus Incorporating An Optical System Or Of The Contact Type And Thermo-Copying Apparatus – Other Photocopying Apparatus: Of The Contact Type | 90092200 | 0 | – | 01/07/2017 | – | |
| Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof | Air Conditioning Machines, Comprising A Motordriven Fan And Elements For Changing The Temperature And Humidity, Including Those Machines In Which The Humidity Cannot Be Separately Regulated 8415 10 – Window Or Wall Types, Self-Contained Or Split System: O | 84151090 | 28% | – | 01/07/2017 | – |
| Sprinklers; Drip Irrigation System Including Laterals; Mechanical Sprayers | 8424 | 12% | – | 25/01/2018 | – | |
| elements or of isotopes | Heterocyclic Compounds With Nitrogen Heteroatom( S) Only – Compounds Containing In The Structure A Quinoline Or Isoquinoline Ring-System (Whether Or Not Hydrogenated), Not Further Fused : Other | 29334900 | 18% | – | 01/07/2017 | – |
| Heterocyclic Compounds With Nitrogen Heteroatom( S) Only – Compounds Containing In The Structure A Quinoline Or Isoquinoline Ring-System (Whether Or Not Hydrogenated), Not Further Fused : | 29334100 | 18% | – | 01/07/2017 | – | |
| Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof | Parts And Accessories Of The Motor Vehicles Of Headings 8701 To 8705 – Other Parts And Accessories — Safety Airbags With Inflater System; Parts Thereof | 87089500 | 28% | Nil | 01/08/2019 1/07/2017 | – |
Bringing the cinematic experience home is a dream for many, and a home theatre system is the key. But for businesses involved in selling or even renting these impressive electronic setups, understanding the correct HSN (Harmonized System of Nomenclature) code and its associated GST (Goods and Services Tax) rate is crucial for compliance.
The provided data, while mentioning “Home Entertainment Equipment,” primarily focuses on services related to leasing or rental of such equipment. This means we’re looking at SAC (Services Accounting Codes) rather than HSN codes for the service part.
However, the question refers to “Home theatre system HSN Code,” implying the physical goods themselves. Let’s delve into how a home theatre system, as a product, is generally classified under HSN.
A home theatre system is typically a combination of various electronic components, including:
Given the typical components of a home theatre system, they generally fall 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.
For the various components that make up a home theatre system, the prevailing GST rate is generally 18%. This rate applies to:
This 18% rate has been effective since July 1, 2017.
The data provided explicitly highlights SAC 997321: “Leasing Or Rental Services Concerning Televisions, Radios, Video Cassette Recorders, Projectors, Audio Systems And Related Equipment And Accessories (Home Entertainment Equipment).” These services also attract an 18% GST rate, effective from July 1, 2017, with specific revision notes from January 1, 2019, and January 25, 2018.
In essence, whether you’re purchasing a home theatre system or renting its components, the applicable GST rate for both the goods and related services is generally 18%. Always ensure accurate classification for seamless business operations.
A complete home theatre system is a collection of goods, and its HSN classification can be based on the primary component (e.g., speakers) or by classifying each individual component if sold separately.
Most home theatre system components, like speakers and players, fall under Chapter 85 (Electrical machinery and equipment).
Loudspeakers are generally classified under HSN 8518, with common sub-headings like 85182900.
Which HSN code covers video players (like DVD/Blu-ray players) in a home theatre setup?
The GST rate for renting home theatre equipment is 18%.
The 18% GST rate for both the components and rental services of home theatre systems generally became effective from July 1, 2017.
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Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548) | The SEBI Registration No. allotted to us is INZ000313732. NSE Member Code: 90326 | BSE Member Code: 6808 | MCX Member Code: 57120 DP | CDSL: 12099800
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