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.
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