The mobile phones have become a basic necessity nowadays, it can also be now called as the 4 essential need after the basic needs such as Food, Shelter, and Home. The life of the individual has changed nowadays and people can leave their phones for almost a second. Like other goods, the cost of the smartphones and their accessories rely on the GST rules applied to it.
So we must know the rules of GST applied to smartphones and their various accessories.
The Goods and Service Tax system has made a change in the system of taxation and has transformed into a stable tax system. Due to that, the cascading effect of the tax is diminished. Double taxation, class issues, the multiplicity of the charges have also been stopped and every state of India has only one tax system ie Goods and Services Tax.
#Importance of GST
The GST has made a revolution in the tax system and due to that the goods and product prices are cheap compared to that before Goods and Service Tax. Before GST, there was Value Added Tax(VAT) which was state-level tax and when the products and goods are imported or exported from one state to another state then extra charges were applied on the goods and product. The GST had merchants a lot and reduced the tax on importing of the goods.
So it beneficial for the merchants and they can apply for the GST Registration online as well as offline based on their comfort.
#How does GST is beneficial for Smartphone Dealers?
As there is an increase in demand for electronic products by the youngster and having craze of playing games in the smart-phones, the sales are also increasing day by day. Before the GST regime, there was a Value Added Tax(VAT) system in which the prices of the smartphones were varying due to the cascading effect of the tax system and the prices were also varying from state to state.
Hence the price of the phones was not fixed. But under the GST regime, there is no cascading effect on the tax and the prices of the smartphones were the same for every state. Thus the price of smartphones is fixed. Hence the GST can be beneficial to Smartphone Dealers. Goods and Service tax provides the same taxation of 12% for every state in India.with related HSN code ie 8517.
#Goods and Service Tax rates on Smartphones and their accessories
The smartphones have a fixed tax rate of 12% on new phones and the accessories have an 18% taxation rate. However, the tax rate of the accessories can change due to the nature of the product. Hence the person should be aware of the HSN codes that are applied to the accessories. While invoicing an owner should consider the specifications of HSN codes.
#Custom Duties on Smartphones:-
If one is importing the smartphones outside the country, then the custom duties are applied on the smartphones and that is:-
1. National Calamity Contingent Duty (NCCD) :- 1%
2. Basic Customs Duty (BCD) :- 0%
3. Countervailing Duty (CVD) :- 12.5%
If You need any help regarding GST Registration You can contact us our Toll free Number 1800-3070-2070
