GST on TV (television) in India

Learn about the goods and services tax implications on television purchases in India, including rates and compliance details.
Business Loan
3 min
05 Aug 2024

Understanding the GST impact on televisions in India is essential for consumers and businesses. This article delves into the current GST rates, how they affect pricing, and what buyers and sellers should know about the television business.

Taxability of GST on television sales

The Goods and Services Tax (GST) applies to the sale of televisions in India. The GST rate on televisions varies depending on the screen size. For televisions with a screen size up to 32 inches, the GST rate is 18%. For those exceeding 32 inches, the rate is 28%. This tax is levied on the supply of goods and services, meaning it is charged at every step of the supply chain until the final sale to the consumer. To understand the origins and evolution of GST, read about the history of GST and its impact on various sectors. The GST on televisions ensures a uniform tax structure across India, simplifying the tax process for businesses and consumers alike.

Price of TV before and under GST

Item Before GST (VAT applicable) Under GST
TV (up to 32 inches) 12.5% VAT 18% GST
TV (above 32 inches) 14.5% VAT 28% GST


Note: Prices vary based on brand and features. The VAT was replaced by GST, simplifying the tax structure but changing the final prices of TVs. To learn about the simplified GST framework, explore the features of GST that have streamlined indirect taxation. This shift impacted the overall cost structure for consumers, particularly for high-end models.

HSN code and GST on TV in India

TV Type HSN code GST rate
TV (up to 32 inches) 8528 18%
TV (above 32 inches) 8528 28%


HSN code: The Harmonized System of Nomenclature (HSN) code for televisions in India is 8528. The HSN code is used to classify goods for taxation purposes under the GST regime. For insights into the broader tax framework, check out the GST structure in India to understand how GST applies to various products and services. The GST rates are based on the screen size, with higher rates for larger televisions.

Impact of GST on TV prices

The introduction of GST has significantly impacted TV prices in India. Previously, Value Added Tax (VAT) varied across states, leading to different prices. GST has standardised the tax rate, eliminating state-level disparities. However, the increase in tax rates for larger TVs under GST has led to higher prices for these models. Consumers now pay more for larger screens, making them less accessible to budget-conscious buyers. The uniform tax structure under GST, however, simplifies the buying process and ensures consistent pricing across the country.

How to calculate GST on TV?

To calculate the GST on a television, identify the applicable GST rate based on the screen size. For instance, a TV with a screen size up to 32 inches is taxed at 18%, while larger screens attract 28%. Multiply the TV's base price by the GST rate, then add the result to the base price to find the final cost. For a detailed understanding of ITC benefits in this context, check out what is input tax credit under GST to maximise savings on purchases. For example, if a 40-inch TV is priced at Rs. 20,000, the GST amount would be Rs. 5,600 (28% of Rs. 20,000), making the total cost Rs. 25,600. Using a GST calculator can simplify this process, ensuring accurate pricing.

Conclusion

The implementation of GST has streamlined the taxation process for televisions in India, replacing the previous VAT system. Although it has led to an increase in prices for larger screens, it has also brought uniformity and transparency to the market. This change is significant for businesses seeking a business loan to expand their inventory, as a clear understanding of tax liabilities can aid in better financial planning.

Know more about Bajaj Finserv Business Loan

Here are some of the key advantages of our business loan that make it an ideal choice for your business expenses:

Rapid disbursement: Funds can be received in as little as 48 hours of approval, allowing businesses to respond promptly to opportunities and needs.

High loan amount: Businesses can borrow funds up to Rs. 80 lakh, depending on their needs and qualification.

Competitive interest rates: The interest rates for our business loans range from 14% to 30% per annum.

Flexible repayment schedules: Repayment terms can be tailored to align with the business's cash flow, helping manage finances without strain. You can choose a tenure ranging from 12 months to 96 months.

Frequently asked questions

What is the GST rate for smart televisions?
The GST rate for smart televisions in India depends on the screen size. For smart TVs with a screen size up to 32 inches, the GST rate is 18%. For those with a screen size exceeding 32 inches, the rate is 28%. This rate applies to the overall sale price of the television, including all features and technologies associated with the smart TV. The GST rate is uniform across India, ensuring consistent pricing and taxation for consumers and businesses.

How is the GST discount treated when purchasing a television?
When purchasing a television with a GST discount, the discount is typically deducted from the base price of the TV before calculating the GST. The reduced price, after applying the discount, is then used to calculate the GST amount. For instance, if a television is priced at Rs. 20,000 with a 10% discount, the discounted price becomes Rs. 18,000. The GST is then applied to this discounted price, resulting in a lower overall cost for the consumer.

Can I claim GST on TV?
Yes, you can claim GST on a television if it is purchased for business use. The GST paid on the purchase can be claimed as Input Tax Credit (ITC), provided the TV is used for business purposes and is not included in the list of blocked credits. To claim ITC, ensure that the TV is billed in the name of the business, and the supplier is registered under GST. This can help reduce your overall tax liability.

How much is the GST on TV channels?
The GST rate on TV channel subscriptions in India is 18%. This rate applies to all types of TV channel packages, including basic and premium options. The tax is levied on the total subscription cost, making it a standard charge for viewers. This uniform rate simplifies the billing process for consumers and providers alike. As a part of the services sector, TV channel subscriptions fall under the same GST category as other digital and entertainment services.

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