{"id":56001,"date":"2024-12-16T19:06:25","date_gmt":"2024-12-16T13:36:25","guid":{"rendered":"https:\/\/piceapp.com\/blogs\/?p=56001"},"modified":"2024-12-17T11:56:06","modified_gmt":"2024-12-17T06:26:06","slug":"gst-on-iphone","status":"publish","type":"post","link":"https:\/\/piceapp.com\/blogs\/gst-on-iphone\/","title":{"rendered":"GST on iPhone: HSN Code and Applicable GST Rate on iPhone"},"content":{"rendered":"\n
Since the implementation of the Goods and Services Tax in 2017, it has made an impact on the mobile phone industry, especially smartphones. Among the most popular phones, the iPhone is a premium product with a significant market share in India. Proper knowledge of the intricacies of GST on these phones is crucial not only for consumers but also for retailers and distributors.<\/p>\n\n\n\n
In this blog, we will discuss various aspects of GST on iPhones<\/strong>, including its rates, calculation methods, import duties and the potential benefits for smartphone dealers.<\/p>\n\n\n\n Before GST implementation, the central and state governments levied multiple indirect taxes, such as service tax, central excise duties, VAT and customs duty, at stages of the entire supply chain. Post implementation, GST is levied as it subsumed the existing indirect taxes under one head. However, customs duty is also applicable as iPhones are imported from countries such as China. This is also the reason why iPhones are one of the high-end<\/a> smartphones in India.<\/p>\n\n\n\n The GST rate applicable <\/strong>on iPhones in India is 18%, the same as the applicable rate on other mobile phones in India. Under the single tax regime, this rate of 18% is uniform across all the Indian states. Along with GST, a customs duty of 15% is applicable on iPhones as per the 2024 Budget.<\/p>\n\n\n\n It is important to remember that if you purchase an iPhone from a dealer in the same state\/UT then you are liable to pay 9% CGST and 9% SGST. If you purchase from a dealer located in a different state\/UT, you need to pay IGST at the rate of 18% on the iPhone.<\/p>\n\n\n\n \ud83d\udca1 If you want to pay your GST with Credit Card, then download\u00a0Pice Business Payment App<\/a>. Pice is the one stop app for all paying all your business expenses.<\/p>\n\n\n\n Let us understand the calculation of GST rate for iPhones pre and post-GST with the help of a table:<\/p>\n\n\n\n Refurbished phones refer to the old used phones which were purchased by a third party and later sold by them. They make any necessary repairs and undertake running checks to increase the value and selling price. Considering the high prices of iPhones in India, many choose to purchase refurbished mobile devices instead of new ones.<\/p>\n\n\n\n Let us understand this with an example:<\/p>\n\n\n\n A retailer purchases a refurbished model of iPhone from the original user, say for \u20b960,000. The retailer then sells it off to a second owner of the phone, say for \u20b990,000.<\/p>\n\n\n\n In the above case, the Goods and Services Tax will apply to the profit margin only, which is \u20b930,000.<\/p>\n\n\n\n Therefore, the amount of GST is \u20b95,4000.<\/p>\n\n\n\n It is important to remember there should be no claimant of Input Tax Credit during the initial purchase of the iPhone.<\/p>\n\n\n\n You are eligible to timely claim Input Tax Credit (ITC) on iPhones if you use them for business purposes or in the furtherance of business.<\/p>\n\n\n\nGST on iPhones<\/strong><\/h2>\n\n\n\n
GST Rate for iPhones in India<\/strong><\/h2>\n\n\n\n
How Is the GST Rate for iPhones Calculated Pre-GST vs Post-GST? <\/strong><\/h2>\n\n\n\n
Particulars<\/strong><\/td> Row<\/strong><\/td> Pre-GST (Amount in \u20b9)<\/strong><\/td> Post-GST (Amount in \u20b9)<\/strong><\/td><\/tr> Manufacturing cost<\/td> A<\/td> 50,000<\/td> 50,000<\/td><\/tr> Applicable Customs duty @ 22% (Basic 20% + Surcharge 2%)<\/td> B<\/td> 11,000<\/td> 11,000<\/td><\/tr> Value for GST\/VAT calculation<\/td> C=A+B<\/td> 61,000<\/td> 61,000<\/td><\/tr> VAT at the rate of14%*\/GST at the rate of18%<\/td> D<\/td> 8,540<\/td> 10,980<\/td><\/tr> Selling price to retailer<\/td> E=C+D<\/td> 69,540<\/td> 71,980<\/td><\/tr> Value addition by the retailer<\/td> F<\/td> 2,000<\/td> 2,000<\/td><\/tr> VAT@14%*\/GST @18%<\/td> G<\/td> 280<\/td> 360<\/td><\/tr> The total price paid by the customer<\/td> H = E+F+G<\/td> 71,820<\/td> 74,340<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n GST on Refurbished iPhones<\/strong><\/h2>\n\n\n\n
Input Tax Credit for iPhones<\/strong><\/h2>\n\n\n\n