Using the Harmonized System of Nomenclature (HSN) code is important for classifying goods, such as mobile phones and accessories, to ensure the correct Goods and Services Tax (GST) is applied in India.
What is HSN code for mobile phones?
The main HSN code for mobile phones is 8517. This covers “Telephone sets, including mobile phones and other wireless network phones; and other devices for transmitting or receiving voice, images, or data.”
This main code is broken down into sub-codes to identify specific types of devices:
- 8517 – The primary four-digit heading
- 8517 12 – Covers “Telephones for cellular or other wireless networks,” which includes most modern smartphones
- More detailed codes, such as 8517 12 11 for “Mobile phones other than push-button type” and 8517 12 19 for “Mobile phones, push-button type,” provide finer classification
HSN code and GST rates list for mobile phones and accessories
As per the latest updates, mobile phones and most key accessories attract a uniform GST rate of 18% in India. The classification is as follows:
| 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 (e.g., LCD, PCB Assembly) | 8517 70 or 8517 (Chapter 85) | 18% |
| Plastic Screen Protector | 3919 | 18% |
| Tempered Glass Screen Protector | 7007 | 18% |
Note: While the main HSN code for mobile phones is 8517, the full code for GST compliance often extends to 6 or 8 digits to classify specific products (e.g., 8517 12 11).
How to find HSN code for your mobile device?
For a business selling mobile devices, using the correct HSN code is essential for invoicing and GST compliance. You can identify the right HSN code through these methods:
- Official GST Portal or CBIC Website: The Central Board of Indirect Taxes and Customs (CBIC) website or the official GST portal lists the latest HSN codes and GST rates.
- GST Tariff Reference: Chapter 85 of the GST Tariff covers “Electrical machinery and equipment and parts thereof” and provides detailed 6-digit and 8-digit codes for telecommunication devices.
- GST Practitioner or Chartered Accountant (CA): Professionals can help with accurate classification, especially for complex or large-volume transactions.
- Manufacturer or Supplier Documents: HSN codes are often included on purchase invoices or import/export documents provided by the supplier.
Common mistakes to avoid when using HSN codes for mobile
Using the wrong HSN code can cause compliance problems, penalties, and incorrect tax payments. Avoid these common mistakes:
- Using a shortened code: The main HSN for mobile phones is 8517, but businesses often need the full 6-digit or 8-digit code depending on turnover for accurate classification and mandatory invoice disclosure.
- Misclassifying accessories: Not all mobile accessories fall under 8517. Chargers (8504), headphones (8518), and other items have separate HSN codes and must be classified individually, especially if sold separately or when the phone is not part of a “composite supply.”
- Ignoring updates: The GST Council occasionally revises HSN codes and rates. Using outdated information is risky—always check the latest official notifications.
- Incorrectly handling bundled products: When a phone is sold with a charger and earphones together, it is usually a composite supply, where the main item (the phone) determines the GST rate for the bundle (18%). Misunderstanding this can lead to errors.
HSN code for refurbished mobile phones
Refurbished or second-hand mobile phones use the same main HSN code as new phones: 8517.
However, GST on used goods like refurbished phones is usually calculated under a special rule called the Margin Scheme.
- HSN Code: 8517
- GST Rate and Valuation: GST is charged at 18%, but only on the dealer’s profit margin (selling price minus purchase price), provided the seller did not claim an Input Tax Credit (ITC) on the purchase of the used phone. This method simplifies taxation and avoids double GST on the full value of the old product.
Conclusion
HSN code 8517 is the main classification for mobile phones under India’s GST system, with a GST rate of 18%. Correct HSN classification is essential for proper GST compliance for mobile phones and their accessories. Businesses should use the full 6- or 8-digit codes, classify accessories accurately, and follow rules such as the Margin Scheme for refurbished phones to ensure smooth operations and avoid penalties.
