GST on Tracking Devices: GPS Tracking Device GST Rate and HSN Code

GST on GPS tracking devices is applicable when sold as standalone products and not as an essential part of another product. Learn from this article cases when this occurs along with the GST rate on GPS tracking devices, its applicability, and the various exemptions provided by the government. 

Applicability of GST on Tracking Devices

The applicability of GST on tracking devices depends on various factors such as the type of device, its usage, and the nature of the transaction. The GST on GPS tracking devices is applicable when tracking devices are sold as standalone products. In other words, if the tracking devices are sold as a single product for consumption, it attracts GST. Similarly, if these tracking devices are supplied as a part of a product, it does not attract GST separately. Tracking devices are generally used in products like cars, smartphones, smart watches, etc. 

However, the government provides certain exemptions on the supply of tracking devices. If the tracking devices are being used for personal purposes, they may be exempt from GST. However, if they are being used for commercial purposes, they will be subject to GST.

Similarly, the transportation of tracking devices of a consignment valued more than Rs. 50,000 requires you to generate an e-way bill mandatorily. General rules on place of supply of goods apply to the supply of tracking devices as given under the IGST Act. Likewise, invoicing and e-invoicing rules, wherever applicable, apply to the sale of tracking devices.

GST Rate and HSN Code for Tracking Devices 

Given below are the GPS tracking device HSN codes and the GST rate on tracking devices-

The tracking devices affixed on the container during import are also exempt from customs duty and GST. 

ITC availability for GST on GPS Tracking Devices 

Input Tax Credit (ITC) is available on tracking devices, subject to certain conditions. Here are some key points to consider:

• ITC (Input tax credit) is available only on the tracking devices sold for business-related purposes. The tracking devices sold for the use of personal purposes are not eligible for claiming ITC. 
• Similarly, ITC is available only when GST is paid on taxable supplies. 
• The supplier of the tracking device should have correctly charged the GST as per the GST rate on GPS tracking devices and deposited it with the government.
• The buyer must also be in the possession of a valid tax invoice and other important documents such as debit notes, credit notes, and delivery challans at the time of claiming ITC. 
• Also, it is very important for the buyer to file GST returns on time and correctly to be eligible for the benefit of the input tax credit. 

However, the terms and conditions for claiming ITC keep changing from time to time. You should always check the latest updates. 

FAQs on GST on Tracking Devices 

What is the HSN code for vehicle tracking devices?

The HSN code for GPS tracking devices is 8526. The products under this category include radar apparatus, radio remote control, and radio navigational aid apparatus. It also includes direct measuring equipment, direction-finding equipment, a non-directional beacon, Omni range equipment, and an instrument landing system. 

What is the GST on GPS devices?

In India, GPS devices are categorised under the HSN code 8526, and the GST rate on GPS tracking devices is 18%. This GST rate is applicable on all GPS devices including handheld GPS devices, vehicle GPS trackers, and other GPS-enabled devices used for navigation, tracking, and location-based services.

What is the code for GPS tracking devices?

HSN code, or the Harmonized System Nomenclature, is a number developed by the World Customs Organization to classify different types of goods into different categories. It is a globally accepted standard and system for naming different goods and services. The HSN code for GPS tracking devices is 8526. All types of GPS or tracking devices are categorised under this number. 

What is HSN code 852610?

HSN code 852610 pertains to GPS receivers that are designed to be used with vehicles. This code covers GPS devices that are specially designed to be mounted or installed on vehicles such as cars, trucks, buses, and other motorised vehicles.

HSN code 852610 falls under the category of radar apparatus, radio navigational aid apparatus, and radio remote control apparatus.