GST on TV or television

Various television types are liable for Goods and Services Tax (GST). The implementation of GST and the subsequent subsuming of all other tax regimes have impacted the television industry and its components in different ways. GST on TV has impacted both manufacturers as well as consumers in India.

Taxability of GST on the sale of TV and electronics

Under GST, sale of television or sale of TV is taxed as any other electronic item. Section 7 states that any supply will be covered under the scope of GST unless specifically exempted. Hence, sale or leasing of TV is subject to GST at rates discussed in the next section. Sale of TV or leasing of TV is taxable under GST and not exempt by any notification.

The MRP of TV in stores or price quoted in online shopping is generally inclusive of GST. For sale of TV, the value of supply to compute GST is the sale price of the TV and its accessories.

Price of TV before and under GST

During the pre-GST era, most of the states in the country levied a Value added tax (VAT) on home electronics at the rate of 11% to 12.5%. Then again, the same electronics segment also had excise duty of 12.5%. So, consumers paid 23-28% as taxes on televisions. Some states used to charge OCTROI at 5% over and above the above rate. 

With the introduction of GST on televisions, the bifurcation in taxation has been done away with. Now televisions attract only GST at rates between 18% and 28%. So the prices of smaller TVs came down overall after the introduction of GST. However, the prices of luxury or large sized TVs are still high.

Particulars	Before GST (Rs)	Post GST (Rs)
Value of LED TV 32 inches	10,000	10,000
Add: Excise duty at 12.5%	1,250	–
Total value	11,250	10,000
Add: VAT at 12.5%	1,406	–
Add: GST at 18%	–	1,800
MRP of LED TV 32 inches	12,656	11,800

HSN Code and GST on TV in India

HSN Chapter 85 contains the HSN code for all televisions and parts thereof. Televisions under chapter 85 of HSN are taxed at 18% to 28% GST.

HSN code	Items	GST
8528	GST on LED TV 32 inches and below	18%
8528	Set top Box for Television (TV)	18%
8528	Monitors and projectors	28%
8528	GST on LED TV 43 inches	28%
8528	GST on LED TV 55 inch,	28%
8528	GST on LED TV 55 inch and above	28%

FAQs on GST on TV 

Is Input Tax Credit (ITC) on purchase of Television allowed?

Yes, ITC is allowed. The same is not restricted by Section 17(5) of the CGST Act.

How much GST on Smart TV?

GST rate on smart TV depends on the screen size. If it is equal to or below 32 inches, then 18% GST is charged. However, if screen size is more than 32 inches, then 28% GST is charged.

What is the HSN code for LED TV?

The HSN code of LED TV is 8528.

How is discount on TV sale treated under GST?

If aftersale discounts was not predicted during the TV sale, discount cannot be deducted from the sale value for calculating GST.