.gif)
Key Highlights
- All telephone sets, including mobile phones, landlines, and intercoms, are subject to a uniform GST rate of 18% under various HSN codes.
- Different telephone devices have specific HSN codes (8517 series) based on their type and functionality, such as mobile phones (851712), corded telephones (851711), and telecom network equipment (851762).
- Business owners dealing with telephone sets must use the correct HSN code and GST rate for accurate tax filing and to avoid penalties for misclassification.
If you're a business owner dealing with telephone sets and want to import, manufacture, or sell these devices, you should know how GST (Goods and Services Tax) and HSN (Harmonised System of Nomenclature) codes apply.This article simplifies everything you need to know about GST rates and HSN codes for telephone sets.
Classifying Telephone Sets Based on HSN Codes
Telephone sets are classified under Chapter 85. Here are the details:
| Description | HSN Code | Rate (%) |
| Telecommunication devices, including mobile phones and other wireless network telephones, along with apparatus designed for transmitting or receiving voice, images, or data. This also includes devices used for wired or wireless network communication, such as long-range communication technology | 8517 | 18 |
| Corded telephone systems with wireless handsets | 851711 | 18 |
| Telecommunication devices, including cellular and other wireless network phones, along with equipment designed for transmitting or receiving voice, images, or data. This also includes wired or wireless network communication devices, such as those utilising long-range communication technology | 85171110 | 18 |
| Telecommunication devices, including telephones designed for cellular and other wireless networks, as well as equipment for transmitting or receiving voice, images, or data. This also includes devices used for communication over wired or wireless networks, such as long-range communication technology | 85171190 | 18 |
| Phones for cellular or other wireless networks | 851712 | 18 |
| Telephone sets, including telephones designed for cellular and other wireless networks, as well as equipment used for transmitting or receiving voice, images, or data. This also includes communication devices for wired or wireless networks, such as long-range communication technology | 85171210 | 18 |
| Mobile phones, excluding push-button models | 85171211 | 18 |
| Mobile phone including push button type | 85171219 | 18 |
| Telephone devices, including telephones for cellular and wireless networks, along with other equipment designed for transmitting or receiving voice, images, or data. This also includes devices used for communication over wired or wireless networks, such as long-range communication technology | 85171290 | 18 |
| Other | 851718 | 18 |
| Telephone sets, including telephones designed for cellular networks or other wireless systems, as well as other equipment used for transmitting or receiving voice, images, or data. This also includes devices for communication within wired or wireless networks, such as a long-range communication technology | 85171810 | 18 |
| Telephone sets for communication, including telephones designed for cellular or other wireless networks, as well as other apparatus for transmitting or receiving voice, images, or data. This also includes apparatus for wired or wireless network communication, such as a long-range communication technology | 85171890 | 18 |
| Electrical devices used for line telephony or telegraphy, including cordless telephone sets and telecommunication equipment for carrier-current or digital line systems; videophones – videophones and telephone sets: other | 85171911 | 18 |
| Electrical devices used for line telephony or telegraphy, including cordless handset telephone sets and telecommunication equipment for carrier-current or digital line systems; videophones – telephone sets; videophones: other | 85171912 | 18 |
| Electrical devices used for line telephony or telegraphy, including cordless handset telephone sets and telecommunication equipment for carrier-current or digital line systems; videophones – telephone sets; videophones – other. | 85171919 | 18 |
| Electrical devices for line telephony or telegraphy, including cordless handset telephone sets and telecommunication equipment for carrier-current or digital line systems; video phones – telephone sets; video phones – others | 85171920 | 18 |
| Electrical apparatus for line telephony or telegraphy, including line telephone sets with cordless handsets and telecommunication devices for carrier-current or digital line systems; videophones, fax machines, and teleprinters | 85172100 | 18 |
| Electrical devices used for line telephony or telegraphy, including cordless handset telephone sets and telecommunication equipment designed for carrier-current or digital line systems, as well as video phones, fax machines, and teleprinters | 85172200 | 18 |
| Electrical devices used for line telephony or telegraphy, including cordless handset telephone sets and telecommunication equipment for carrier-current or digital line systems, as well as videophones and telephonic or telegraphic switching systems | 85173000 | 18 |
| Electrical devices used in line telephony or telegraphy, including cordless handset telephone sets and telecommunication equipment for carrier-current line systems or digital line systems, as well as videophones: other apparatus for carrier-current communication | 85175010 | 18 |
| Electrical devices used in line telephony or telegraphy, including cordless handset telephone sets and telecommunication equipment designed for carrier-current line systems or digital line systems, as well as videophones: other apparatus for carrier-current communication | 85175020 | 18 |
| Electrical devices used for line telephony or telegraphy, including cordless handset telephone sets and telecommunication equipment for carrier-current or digital line systems, as well as videophones: other apparatus, for carrier-current systems. | 85175030 | 18 |
| Electrical devices used for line telephony or telegraphy, including cordless handset telephone sets and telecommunication equipment designed for carrier-current line systems or digital line networks; videophones: other apparatus, for carrier-current systems | 85175040 | 18 |
| Electrical devices used for line telephony or telegraphy, including cordless handset telephone sets and telecommunication equipment for carrier-current or digital line systems, as well as videophones: other apparatus designed for carrier-current systems | 85175050 | 18 |
| Electrical devices for wired telephony or telegraphy, including cordless telephone sets and telecommunication equipment for carrier-current or digital line systems; video phones: other apparatus for carrier-current systems | 85175060 | 18 |
| Electrical devices designed for line telephony or telegraphy, including cordless handset telephone systems and telecommunications equipment for carrier-current or digital line networks; videophones: other apparatus for carrier-current systems | 85175070 | 18 |
| Electrical devices designed for line telephony or telegraphy, including cordless handset telephone sets and telecommunication equipment for carrier-current or digital line systems, as well as video phones: other apparatus | 85175091 | 18 |
| Electrical devices designed for line telephony or telegraphy, encompassing cordless handset telephone sets and telecommunication equipment for carrier-current or digital line systems, including videophones: other apparatus for carrier-current applications | 85175092 | 18 |
| Electrical devices used in line telephony or telegraphy, including cordless handset telephone sets and telecommunication equipment for carrier-current or digital line systems, as well as videophones: other apparatus for carrier-current systems | 85175093 | 18 |
| Electrical devices used in line telephony or telegraphy, including cordless handset telephone sets and telecommunication equipment designed for carrier-current line systems or digital line systems, as well as videophones: other apparatus for carrier-current communication | 85175094 | 18 |
| Electrical devices used in line telephony or telegraphy, including cordless handset telephone sets, telecommunication equipment for carrier-current line systems or digital line systems, and videophones: other apparatus designed for carrier-current communication | 85175099 | 18 |
| Telecommunication sets, including telephones and other wireless network telephones, as well as equipment for transmitting or receiving voice, images, or data. This includes devices designed for wired or wireless network communication, such as a long-range communication technology | 85176100 | 18 |
| Machines for receiving, converting, transmitting, or regenerating voice, images, or other data, including switching and routing devices | 851762 | 18 |
| Devices used for communication, including telephone sets for cellular or other wireless networks, as well as other equipment designed for transmitting or receiving voice, images, or data. This also includes apparatus for wired or wireless network communication, such as a long-range communication technology | 85176210 | 18 |
| Telephone devices, including those designed for cellular networks or other wireless systems, along with other apparatus for transmitting or receiving voice, images, or data. This also includes communication devices used in wired or wireless networks, such as long-range communication technology | 85176220 | 18 |
| Telephone sets, including those designed for cellular and other wireless networks, as well as apparatus used for transmitting or receiving voice, images, or data. This also includes communication equipment for both wired and wireless networks, such as long-range communication technology | 85176230 | 18 |
| Devices for telecommunication, including mobile phones and other wireless network telephones; additional apparatus for transmitting or receiving voice, images, or data, encompassing wired and wireless communication systems, such as long-range communication technology | 85176240 | 18 |
| Telecommunication devices, including mobile phones for cellular or other wireless networks, as well as apparatus for transmitting or receiving voice, images, or data. This also includes wired or wireless communication systems, such as long-range communication technology | 85176250 | 18 |
| Devices for telecommunication, including mobile phones designed for cellular and other wireless networks, as well as apparatus for transmitting or receiving voice, images, or data. This also includes communication apparatus for wired or wireless networks, such as those utilising long-range communication technology | 85176260 | 18 |
| Telecommunication devices, including mobile phones for cellular or other wireless networks, as well as other apparatus designed for transmitting or receiving voice, images, or data. This also includes devices used for communication over wired or wireless networks, such as long-range communication technology | 85176270 | 18 |
| Phones, including those designed for cellular networks or other wireless systems, and other apparatus for transmitting or receiving voice, images, or data. This also includes equipment for wired or wireless network communication, such as long-range communication technology | 85176290 | 18 |
| Other | 851769 | 18 |
| Devices for telecommunication, including mobile phones for cellular and other wireless networks, along with apparatus designed for transmitting or receiving voice, images, or data. This also includes communication devices for wired or wireless networks, such as long-range communication technology | 85176910 | 18 |
| Devices used for telecommunication, including telephones designed for cellular and other wireless networks, as well as equipment for transmitting or receiving voice, images, or data. This also includes communication apparatus for both wired and wireless networks, such as long-range communication technology | 85176920 | 18 |
| Telecommunication devices, including phones designed for cellular networks or other wireless systems; other apparatus for transmitting or receiving voice, images, or data, encompassing devices for wired or wireless network communication, such as long-range communication technology | 85176930 | 18 |
| Devices used for communication, including telephone sets for cellular and other wireless networks, as well as equipment for transmitting or receiving voice, images, or data. This also includes wired or wireless network communication apparatus, such as a Long Range communication technology | 85176940 | 18 |
| Telecommunication devices, including mobile phones for cellular and other wireless networks, along with equipment designed for transmitting or receiving voice, images, or data. This also includes wired and wireless network communication apparatus, such as a Long Range communication technology | 85176950 | 18 |
| Telecommunication devices, including mobile phones for cellular and wireless networks, as well as other equipment designed for transmitting or receiving voice, images, or data. This also encompasses devices used for communication over wired or wireless networks, such as a Long Range communication technology | 85176960 | 18 |
| Devices used for communication, including telephone sets designed for cellular networks or other wireless systems, as well as equipment for transmitting or receiving voice, images, or data. This also includes wired or wireless network communication devices, such as a Long Range communication technology. | 85176970 | 18 |
| Telecommunication devices, including telephones designed for cellular and other wireless networks, along with additional equipment used for transmitting or receiving voice, images, or data. This also includes devices for communication within wired or wireless networks, such as a Long Range communication technology. | 85176990 | 18 |
| Parts | 851770 | 18 |
| Devices for telecommunication, including phones designed for cellular networks or other wireless systems, along with equipment used for transmitting or receiving voice, images, or data. This also includes communication apparatus for both wired and wireless networks, such as a Long Range communication technology. | 85177010 | 18 |
| Telecommunication devices, including telephones designed for cellular and other wireless networks, along with equipment used for transmitting or receiving voice, images, or data. This also includes devices for wired or wireless network communication, such as a Long Range communication technology | 85177090 | 18 |
| Electrical devices used for line telephony or telegraphy, including cordless handset telephone sets and telecommunication equipment for carrier-current or digital line systems, as well as videophones—other apparatus: telephone attachments | 85178010 | 18 |
| Electrical devices used for line telephony or telegraphy, including cordless telephone sets and telecommunication equipment for carrier-current or digital line systems, as well as videophones—categorised under other apparatus: subscriber-end equipment | 85178020 | 18 |
| Electrical devices used for line telephony or telegraphy, including cordless handset telephone sets and telecommunication equipment designed for carrier-current line systems or digital line networks; videophones: other apparatus: set-top boxes | 85178030 | 18 |
| Electrical devices used for line telephony or telegraphy, including cordless handset telephone sets and telecommunication equipment for carrier-current or digital line systems; videophones – other apparatus: other | 85178090 | 18 |
| Electrical devices used in line telephony or telegraphy, including cordless telephone sets and telecommunications equipment for carrier-current or digital line systems, as well as videophones — parts: that are loaded, populated, or stuffed | 85179010 | 18 |
| Electrical devices for line telephony or telegraphy, including cordless handset telephone sets and telecommunication equipment for carrier-current or digital line systems; videophones – parts: other | 85179090 | 18 |
How to Reduce GST Impact on Telephone Sets?
Here are some tips to reduce GST on telephone sets:
Input Tax Credit (ITC) Benefit
If you are a registered GST taxpayer, you can claim ITC on GST paid for purchases. Example : A telecom company purchases landline phones worth ₹1 lakh for its offices. The ₹18,000 GST paid can be claimed as ITC, reducing overall tax liability.
Composition Scheme (For Small Dealers)
If your annual turnover is below ₹1.5 crore, you can pay GST at a lower rate without ITC benefits.
GST-Registered Vendors
Ensure your supplier is GST-registered to claim ITC and avoid mismatched filings.
Proper HSN Codes
Double-check that HSN codes match the product category to avoid misclassification errors.
Alternative Supply Chains
If high GST impacts pricing, consider importing from low-tax countries or buying refurbished devices.
Understanding GST & HSN Codes Made Simple to Ensure Compliance
Understanding the right HSN codes and GST rates for telephone sets is crucial for smooth business operations and tax compliance. With all telephone devices falling under an 18% GST slab, using the correct classification prevents errors and penalties. A GST Calculator can simplify tax computations, ensuring accuracy in filings and reducing manual errors.Whether you deal in mobile phones, landlines, or telecom equipment, ensuring accurate tax filing will save time and effort. Stay updated with regulations, and you’ll navigate GST and HSN codes with ease, keeping your business on the right track.
FAQS - FREQUENTLY ASKED QUESTIONS
What is the HSN code for mobile phones and telecommunication devices?
The Harmonised System of Nomenclature (HSN) code for mobile phones and other telecommunication devices, including those designed for transmitting or receiving voice, images, or data, is 8517. This includes both wired and wireless network devices used for communication over various networks.
How is the HSN code structured for telephone sets?
The HSN code for telephone sets is hierarchical, with 8517 as the primary category. More specific subcategories exist, such as 851711 for corded telephones, 851712 for cellular phones, and further divisions for push-button and non-push-button models. Each subcategory refines the classification based on technical specifications.
What is the difference between the HSN codes 851711 and 851712?
HSN 851711 applies to corded telephone systems, including those with wireless handsets. In contrast, 851712 is used for telephones designed for cellular or other wireless networks, covering both feature phones and smartphones. The classification is based on the mode of connectivity and network type.
How do I determine the correct HSN code for a specific telephone device?
To determine the correct HSN code, assess the device’s functionality. If it’s a corded telephone, it falls under 851711. If it’s a mobile or wireless device, it falls under 851712. More granular distinctions exist based on features, such as push-button operation (85171211) or other variations (85171290).
Does the HSN code differ for smartphones and basic feature phones?
Yes, smartphones and basic feature phones have different HSN codes under 851712. Feature phones that include push-button functionality are classified under 85171211, while non-push-button models fall under 85171210. These classifications help in determining GST applicability and regulatory distinctions.
Are telephone accessories like chargers and earphones covered under the same HSN code?
No, accessories like chargers, earphones, and cases have separate HSN codes. While telephone sets fall under 8517, accessories typically belong to different categories, such as 8504 for power adapters and 8518 for audio devices like earphones and headsets.
Do landline telephones have a separate HSN code?
Yes, traditional landline telephones are categorised under 851711 if they use a wired connection. If the landline phone has a cordless handset, it may fall under 851719 or similar codes, depending on additional technical specifications.
How are video phones classified under HSN?
Video phones, which support both voice and video transmission, are classified under 851750. They are further divided into specific categories based on their underlying technology, such as digital or carrier-current line systems. These classifications help in applying the correct GST rates and import/export duties.
How do businesses apply the correct HSN code for telecommunication devices?
Businesses must refer to the product’s specifications, compare them with official HSN classifications, and ensure correct invoicing and tax compliance documentation. Consulting with a tax professional or using GST software can help automate the classification process to avoid errors.
Does the HSN code affect import duties for telephone sets?
Yes, HSN codes are crucial for determining import duties. Customs authorities use these codes to apply tariffs, trade restrictions, and compliance measures. Correct classification under 8517 ensures that the right duty structure is followed based on the type of device being imported or exported.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
.webp)
.svg)
