Using the Harmonized System of Nomenclature (HSN) code is important for classifying goods, like mobile phones and their accessories, to ensure the correct Goods and Services Tax (GST) is applied in India.
What is the HSN Code for Mobile Phones?
The main HSN Code for mobile phones is 8517, which covers:
"Telephone sets, including mobile phones for cellular or other wireless networks, and other devices for transmitting or receiving voice, images, or data."
This main code is further divided into sub-codes for more specific classification:
- 8517 – The primary four-digit heading.
- 8517 12 – For telephones for cellular or wireless networks, covering most smartphones.
- 8517 12 11 – Mobile phones, other than push-button type.
- 8517 12 19 – Mobile phones, push-button type.
These sub-codes help businesses correctly identify products for GST and regulatory purposes.
HSN Code and GST Rates for Mobile Phones and Accessories
Currently, mobile phones and most key accessories attract a GST rate of 18% in India. The main classifications are:
Product /Accessory |
HSN Code |
GST Rate |
Mobile Phones/Smartphones |
8517 |
18% |
Chargers/Adapters |
8504 |
18% |
Lithium-ion Batteries |
8507 |
18% |
Power Banks |
8507 |
18% |
Earphones, Headphones, Speakers |
8518 |
18% |
Memory Cards |
8523 |
18% |
Parts (LCD, PCB Assembly) |
8517 70 / 8517 |
18% |
Plastic Screen Protector |
3919 |
18% |
Tempered Glass Screen Protector |
7007 |
18% |
Note: While the main HSN for mobile phones is 8517, tax compliance often requires the full 6- or 8-digit code for precise classification (e.g., 8517 12 11).
How to Find HSN Code for Your Mobile Device
Correct HSN codes are crucial for invoicing and GST compliance. You can determine the code by:
1. Official GST Portal or CBIC Website: Check the most up-to-date list of HSN codes and GST rates.
2. GST Tariff – Chapter 85: Covers "Electrical machinery and equipment," including detailed 6- and 8-digit codes for telecom devices.
3. GST Practitioner or CA: For large or complex transactions, professionals can provide accurate classification.
4. Manufacturer/Supplier Documents: HSN codes often appear on invoices or import/export documents.
Common Mistakes to Avoid When Using HSN Codes
- Using a Shortened Code: Always use the full 6- or 8-digit code for compliance.
- Misclassifying Accessories: Chargers, earphones, and other accessories have separate HSN codes.
- Ignoring Updates: GST rates and HSN codes are periodically revised by the GST Council.
- Incorrectly Treating Bundled Products: For a package of mobile + accessories, the mobile’s HSN (8517) usually determines the GST for the bundle.
HSN Code for Refurbished Mobile Phones
Refurbished or second-hand phones also fall under HSN 8517, but GST is applied differently:
- GST Rate: 18% under the Margin Scheme, applied only on the dealer’s profit margin (selling price minus purchase price).
- Note: Input Tax Credit (ITC) is not claimed on the old phone. This avoids double taxation.
Conclusion
HSN 8517 is the main classification for mobile phones in India, with GST at 18%. Correct classification of phones and accessories, using full 6- or 8-digit codes and following rules for refurbished goods, ensures proper GST compliance, smooth business operations, and helps avoid penalties.
