Understanding the GST impact on televisions in India is crucial for both consumers and businesses alike. With televisions being a common household item and a significant retail product, changes in tax rates directly influence market trends and buying decisions. This article explores the prevailing GST rates on different television models, their effect on overall pricing, and key insights that both buyers and sellers should be aware of when navigating the television market in India.
What is the GST rate on TV or Television?
The introduction of GST on televisions simplified the earlier tax structure, which included VAT, excise duty, and octroi, all contributing to higher prices. Under GST, televisions are now taxed at a standard rate of either 18% or 28%, depending on screen size. This has led to a price drop for smaller TVs, while larger models saw minimal change.
Taxability of GST on television sales
The Goods and Services Tax (GST) applies to the sale of televisions in India. The GST rate on televisions varies depending on the screen size. For televisions with a screen size up to 32 inches, the GST rate is 18%. For those exceeding 32 inches, the rate is 28%. This tax is levied on the supply of goods and services, meaning it is charged at every step of the supply chain until the final sale to the consumer. To understand the origins and evolution of GST, read about the history of GST and its impact on various sectors. The GST on televisions ensures a uniform tax structure across India, simplifying the tax process for businesses and consumers alike. If you're a retailer or distributor looking to grow your business, check your business loan eligibility to plan your finances better.
HSN code and GST on TV in India
According to GST regulations, the following table outlines the applicable GST rates on television sets based on their screen size:
HSN Code |
Item Description |
Total GST Rate |
CGST Rate |
SGST / UTGST Rate |
8528 |
LED or LCD television set (up to 32 inches) |
18% |
9% |
9% |
8528 |
LED or LCD television set (above 32 inches) |
28% |
14% |
14% |
8528 |
LED TV with 43-inch screen |
28% |
14% |
14% |
8528 |
LED TV with 55-inch screen |
28% |
14% |
14% |
8528 |
Set-top box for television |
18% |
9% |
9% |
8528 |
Computer monitors (not exceeding 32 inches) |
18% |
9% |
9% |
8528 |
Monitors and projectors |
28% |
14% |
14% |
HSN code: The Harmonized System of Nomenclature (HSN) code for televisions in India is 8528. The HSN code is used to classify goods for taxation purposes under the GST regime. For insights into the broader tax framework, check out the GST structure in India to understand how GST applies to various products and services. The GST rates are based on the screen size, with higher rates for larger televisions.
Price of TV before and under GST
Item |
Before GST (VAT applicable) |
Under GST |
TV (up to 32 inches) |
12.5% VAT |
18% GST |
TV (above 32 inches) |
14.5% VAT |
28% GST |
Note: Prices vary based on brand and features. The VAT was replaced by GST, simplifying the tax structure but changing the final prices of TVs. To learn about the simplified GST framework, explore the features of GST that have streamlined indirect taxation. This shift impacted the overall cost structure for consumers, particularly for high-end models. If you're stocking premium models or increasing inventory, don’t forget to check your pre-approved business loan offer to support your purchase decisions.
GST on TV or Television: A Comparison of Pre-GST and Post GST
Pre-GST Tax Structure on Televisions
Before the implementation of GST, televisions were subject to multiple indirect taxes, leading to inflated prices for consumers. These included:
- Excise Duty: Imposed by the central government on the manufacturing stage.
- Value Added Tax (VAT): Charged by state governments at various stages of the supply chain.
- Octroi: A local entry tax levied by certain municipal authorities.
This fragmented and multi-tiered tax framework resulted in cascading tax effects, ultimately increasing the retail cost of televisions.
Post-GST Tax Structure on Televisions
With the introduction of GST, the taxation process for televisions has become more streamlined and transparent. Now, televisions are taxed under a unified system with rates determined by screen size:
- GST Rate: Either 18% or 28%, depending on the size of the television.
- CGST (Central GST): Charged by the central government.
- SGST (State GST): Levied by the respective state governments.
- IGST (Integrated GST): Applied on inter-state transactions.
For purchases made within a single state, the GST is split equally between CGST and SGST. In the case of sales across state lines, IGST is levied instead. This system eliminates the overlap of previous taxes and simplifies compliance for businesses and pricing for consumers.
Impact of GST on TV prices
The introduction of GST has significantly impacted TV prices in India. Previously, Value Added Tax (VAT) varied across states, leading to different prices. GST has standardised the tax rate, eliminating state-level disparities. However, the increase in tax rates for larger TVs under GST has led to higher prices for these models. Consumers now pay more for larger screens, making them less accessible to budget-conscious buyers. The uniform tax structure under GST, however, simplifies the buying process and ensures consistent pricing across the country.
Factors affecting GST on TV
The GST on televisions is not only determined by screen size and brand but also by several additional factors. Here are the key elements that impact the final tax and price:
- Screen size and specs: Larger screens and advanced features often attract a higher GST rate of 28%.
- Brand value: Premium or imported brands may have a higher base price, thus increasing the GST amount paid.
- Type of seller: TVs bought from authorised dealers or online platforms may be priced differently than those from resellers due to varying compliance practices.
- Place of purchase: Prices can differ between local shops and large retail chains, affecting the overall GST-inclusive cost.
- Warranty coverage: Televisions with extended or bundled warranties often have higher prices, which leads to higher GST, as tax is calculated on the total invoice value.
These factors combined influence how much GST a consumer ultimately pays on a television purchase.
How to calculate GST on TV?
To calculate the GST on a television, identify the applicable GST rate based on the screen size. For instance, a TV with a screen size up to 32 inches is taxed at 18%, while larger screens attract 28%. Multiply the TV's base price by the GST rate, then add the result to the base price to find the final cost. For a detailed understanding of ITC benefits in this context, check out what is input tax credit under GST to maximise savings on purchases.
Example to calculate GST on TV
If a 40-inch TV is priced at Rs. 20,000, the GST amount would be Rs. 5,600 (28% of Rs. 20,000), making the total cost Rs. 25,600. Using a GST calculator can simplify this process, ensuring accurate pricing.
Conclusion
The implementation of GST has streamlined the taxation process for televisions in India, replacing the previous VAT system. Although it has led to an increase in prices for larger screens, it has also brought uniformity and transparency to the market. This change is significant for businesses seeking a business loan to expand their inventory, as a clear understanding of tax liabilities can aid in better financial planning.
