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The Goods and Services Tax (GST), introduced in 2017, replaced service tax, excise duty, and VAT to create a unified indirect tax system. GST rates are determined by the GST Council using the HSN (Harmonised System of Nomenclature) code.
As per the 2025 updates, GST on electronics and electrical items ranges from 0% and 5% to 28%, depending on the category and use of the product. Items such as mobile phones, laptops, televisions, refrigerators, lighting equipment, and charging stations fall under these slabs. The rate applicable to each product is based on its function and classification under GST law.
As per the 2025 reforms, GST on electronics and electrical items ranges from 0% to 28%, depending on the category.
Here’s the detailed breakdown:
| Product | GST Rate |
|---|---|
|
0% |
|
5% |
|
12% |
|
18% |
|
28% |
Disclaimer: The GST rates listed above are for reference purposes only and may be subject to change based on government updates or amendments. The list does not cover all products or potential exemptions, and certain items may attract additional Cess. For the most up-to-date and comprehensive information, please refer to the official GST portal
To calculate GST on an electronic product:
Identify the correct HSN code for the product
Check the applicable GST rate as per the 2025 reforms (0%, 5%, 12%, 18%, or 28%)
Apply the GST rate on the taxable value of the product
Formula:
GST Amount = (Value of the product × GST Rate) ÷ 100
Final Price = Product Value + GST Amount
Example:
If a television priced at ₹20,000 attracts 18% GST:
GST = (20,000 × 18) ÷ 100 = ₹3,600
Final Price = ₹20,000 + ₹3,600 = ₹23,600
Input Tax Credit (ITC) allows businesses to claim credit for the GST paid on purchases of electronic and electrical items used for business purposes. The credit can be offset against GST liability on sales.
Key points on ITC eligibility:
ITC can be claimed only on items used for business activities, not for personal use
Proper tax invoices or debit notes must be maintained
ITC cannot be availed on goods specifically restricted under GST law (e.g., items for personal consumption)
ITC on capital goods like machinery or equipment can be claimed if used in the course of business
This mechanism helps reduce the overall tax burden and prevents the cascading effect of taxes in the electronics sector.
The updated GST rates on electronics have had a significant influence on both manufacturers and consumers.
Here is how the revised GST rates will affect the electrical and electronics industry:
Many domestic electrical and electronic products continue to fall under higher GST slabs. As a result, companies are often unable to pass GST benefits directly to end consumers.
Higher tax rates, combined with inflationary pressures, are expected to increase the overall cost of household electronic appliances, affecting demand in retail markets.
The usage of electrical machinery and equipment for industrial or business purposes is expected to remain steady despite rate changes.
Reduction in GST on certain electronic goods and waiver of import duties on semi-finished components have been welcomed by industry stakeholders.
Indian manufacturers face stiff competition from low-cost imported electronic parts due to the relatively high GST burden.
The revised GST framework for electrical and electronic items was introduced to replace multiple levies such as VAT, excise duty, and service tax. The system aims to improve transparency and streamline compliance for consumers and businesses.
Like any major reform, the new tax structure brings both benefits and drawbacks. While it simplifies taxation, its impact varies across product categories, influencing affordability, competitiveness, and overall market dynamics.
The GST on electronics and electrical items ranges from 0% to 28%, depending on the category. For example, EV chargers are taxed at 5%, most appliances and components at 18%, and lithium-ion batteries at 28%.
Many household appliances and consumer electronics fall under higher GST slabs. These are treated as non-essential or luxury goods, which increases their effective cost for end consumers.
GST has streamlined taxation by replacing VAT, excise duty, and service tax. However, higher tax rates on certain products, coupled with inflation, have led to an increase in prices for several household electronic goods.
Yes, in some ways. Waivers on import duties for semi-finished components and rationalised GST rates for specific products have supported manufacturers. At the same time, Indian producers face competition from low-cost imports.
The GST regime has introduced transparency, reduced multiple tax levies, and simplified compliance. It also ensures uniform taxation across states, creating a more organised market structure.
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