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Key Highlights
- Before the implementation of GST, televisions (TV) were subject to excise duty and VAT (value-added tax).
- GST (goods and services tax) replaced both these taxes, simplifying the tax structure and its compliance.
- Eliminating the cascading effect, i.e. tax on tax, GST generally reduces the price of TVs as against the price before GST.
The goods and services tax is levied on durable and non-durable goods. One such durable good that is popular and widely used is a television (TV) set. In this blog, you will decode some key GST on TV regulations that will help you understand the impact of GST on TV and the applicable tax rates.Additionally, you will learn about the relevant TV HSN that facilitates the right classification of the TV set for accurate GST calculation . Also Read: How Does GST Work in India?
GST on TV Sale
TV is taxed as electronic items, and their supply is subject to GST. When you go to a store or browse online to buy a TV, the price mentioned usually includes GST. What is the amount that you pay towards this tax? Continue reading, as the following sections cover the rates of GST on TV, along with the applicable TV HSN code. Impact of GST on Before the implementation of GST, TVs were subject to excise duty and VAT (value-added tax). However, GST replaced both these taxes, simplifying the tax structure and its compliance. Moreover, with the elimination of the cascading effect, i.e. tax on tax, the costs of TVs are generally lower than in the pre-GST period.The amount of GST payable is a combination of CGST (Central Goods and Services Tax), SGST (State Goods and Services Tax), and IGST (Integrated Goods and Services Tax).
While CGST is levied by the central government, the state government levies SGST. On the other hand, IGST is levied on interstate transactions.You must note that IGST is applicable in the case of interstate transactions. Whereas Intrastate transactions attract CGST and SGST.
GST on TV and TV HSN Code
We have collated the details of tax rates along with the relevant chapter of the TV HSN code. Interestingly, you can get these details on Central Board of Indirect Taxes and Customs
| Chapter/Heading/Sub-Heading/ Tariff Item*1 | Description | IGST*2 |
| 8528 | Television set (including LCD or LED television of screen size not exceeding 32 inches. | 18% |
| 8528 | Set top Box for television. | 18% |
| 8528 | Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radio-broadcast receiver or sound or video recording or reproducing apparatus [other than computer monitors not exceeding 32 inches, set top box for television and television set (including LCD and LED television) of screen size not exceeding 32 inches. | 28% |
Source: https://cbic-gst.gov.in/gst-goods-services-rates.html *1 Get the respective HSN code details at https://services.gst.gov.in/services/searchhsnsac *2 IGST = CGST + SGST
Avoid Non-compliance by Following GST on TV Regulations
Knowing the applicable rates of GST on TV and the TV HSN code contributes to regulatory compliance and prevents penalties. An online GST calculator helps in knowing your tax liability and facilitates effective tax management. Non-compliance in any form damages the reputation of your business.Thus, ensure to pay your statutory dues on time.Going beyond taxes, timely repayment of loans is also crucial. While business loans offer financial cushion during times of need, repayment failures attract penalties.You can prevent such penalties by having a repayment schedule that best suits your needs. If you're interested in learning more, contact a representative from Aditya Birla Capital.
FAQS - FREQUENTLY ASKED QUESTIONS
What is the GST on TV with a screen size below 32 inches?
The GST on TV is 18% when the screen size is below 32 inches.
Will the GST on TV differ from above if the TV is LCD or LED?
The GST on TV is 18% when the screen size is below 32 inches, including LCD or LED.
Could you explain the importance of the TV HSN code?
Similar to the HSN codes of other goods and services, the TV HSN code facilitates tax compliance, including the correct calculation of GST.
Where can I get the applicable TV HSN code?
You can get the relevant TV HSN code on the official website of Central Board of Indirect Taxes and Customs.
How does the TV HSN code facilitate regulatory compliance?
The right TV HSN code prevents misclassification of televisions, facilitating GST calculation at the right rate and preventing regulatory issues in turn.
How were TVs taxed before GST?
Before the implementation of GST, TVs were subject to excise duty and VAT.
What is the impact of GST on the price of TVs?
GST eliminates the cascading effect by replacing excise duty and VAT. This typically translates into reduced TV prices compared to the pre-GST era.
What is the GST rate on the set-top box for the TV?
The set-top box for the TV is subject to 18% GST.
Is it possible to verify the GST rates?
Yes, you can verify the GST rates on the official website of Central Board of Indirect Taxes and Customs.
How is GST calculated for interstate and intrastate transactions?
IGST is applicable in inter-state transactions. Whereas intrastate transactions attract CGST and SCGST.
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.
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