GST on TV in India

The introduction of the Goods and Services Tax (GST) in India has transformed the taxation system for products like televisions. This unified tax structure is vital for consumers and retailers to understand, as GST rates can vary based on factors, such as screen size and technology.

By knowing the GST on TVs, you can make informed decisions, and sellers can price their products correctly, leading to a clearer marketplace. Let's begin!

GST on the sale of TV

When you buy a TV in India, the GST rate depends mainly on the screen size:

• Screens smaller than 32 inches have a lower TV GST rate, making them more affordable.
• TVs between 32 and 43 inches, as well as smart TVs larger than 43 inches, come under the highest GST category. This is because bigger TVs are considered luxury items.

GST 2.0 has revised the tax on TVs. The tax rate on TVs that are 32 inches or smaller is unchanged at 12%. For larger TVs, the GST is reduced to 18% from 28%.

This tiered structure is designed to differentiate between basic household needs and luxury products. If you're looking to buy a television, knowing the GST on TV can help you plan your budget better.

Price of TV before and under GST

Before GST was introduced, buying a TV meant paying different types of taxes, including:

• VAT (value added tax): Ranged between 11% and 12.5%
• Excise duty: 12.5%
• Octroi tax: Around 5% in some states

These taxes added up to 23% to 28%, depending on the state you lived in. Some states had lower total tax, while others had higher. This made it confusing and difficult for buyers to predict final TV prices.

However, with GST implementation, all these different taxes were replaced with a single tax across India, making pricing more uniform:

• For smaller TVs (below 32 inches), the tax rate is 18%.
• For bigger TVs (above 32 inches), the tax rate is 18%.

What does this imply? Bigger TVs are now cheaper. This simplification has made it easier for both customers and retailers to understand final TV costs.

HSN code and GST for TVs in India

Every product has a special classification code called the HSN (Harmonised System of Nomenclature) code. This system ensures proper tax classification and simplifies the taxation process. For GST on TVs, the code and the rates are as follows:

Impact of GST on TV prices

• Smaller TVs (below 32 inches): With the implementation of GST 2.0, prices remain unchanged because the GST rate is the same at 18%.
• Bigger TVs (above 32 inches): However, if you’re interested in a bigger TV, the GST rates have been reduced to 18% from 28%. You’ll now pay 18% GST, so the prices for those have significantly reduced.

For example:

• Before GST, a 32-inch LED TV priced at ₹10,000 would cost around ₹12,600 after all taxes (including VAT and Excise tax). Under GST, the same TV now costs ₹11,800, and it remains the same after the implementation of GST 2.0.
• Before GST 2.0, a 43-inch LED TV priced at ₹30,000 would cost ₹38,400 after the tax at 28%. Under GST 2.0, the same TV now costs ₹35,400 at 18%.

Why are bigger TVs taxed more?

The Indian government applies a higher 18% GST on TVs measuring above 32 inches because they are considered luxury goods. This is based on the principle that basic appliances, such as smaller TVs, are necessities for many households, while larger, high-end models are seen as premium items.

By keeping smaller TVs at a lower 18% tax rate, the government ensures that essential electronics remain accessible to more people. Meanwhile, higher-end products contribute more to tax revenue.

Conclusion

GST has made TV pricing simpler in India. While high-end TVs have become cheaper, smaller televisions are still taxed at the same rate. This tiered taxation approach ensures affordability for most households while maintaining revenue generation.

Understanding how GST affects TV prices can help you make smarter purchasing decisions. If you're planning to buy a TV, look out for bank offers, no-cost EMI options, and seasonal discounts to get the best deal!

For instance, Axis Bank customers can access exclusive deals and discounts through their Grab Deals platform. Grab Deals electronics offers include special cashback, no-cost EMI options, and discounts on leading television brands, potentially offsetting some of the GST on TV.

Frequently Asked Questions

How is the GST discount treated when purchasing a television?

When a shop gives you a discount on a TV, GST is charged on the discounted price, not the original price. This means you save money on both the base price and the tax. Always check if the advertised price includes or excludes GST before making a purchase.

Which electronic items have a 28% GST?

Electronic items taxed at 28% GST include:

• Televisions larger than 32 inches
• Air conditioners
• Dishwashers
• Digital cameras
• Video game consoles
• High-end sound systems
• Refrigerators above a certain capacity
• Washing machines with special features

These are considered luxury or non-essential goods, which is why they fall under the highest tax bracket.

Disclaimer: This article is intended solely for informational purposes. The views expressed in this article are personal. Axis Bank and/or the author shall not be liable for any direct or indirect loss or liability incurred by the reader arising from reliance on the content herein. Readers are advised to consult a qualified financial advisor before making any financial decisions. Axis Bank does not endorse or guarantee the accuracy of any third-party content or links included in this article.

Tax and GST regulations are subject to change. The information in this article is based on applicable laws, rules, notifications, and interpretations in force as on the date of publication and may change due to amendments, judicial decisions, or regulatory updates.