GST on Television (TV)

Implementing Goods and Services Tax has changed the electronics segment of India. The impact of GST on the television industry is huge. Before GST, the tax applicability was different under central and state levies, which led to a complex system. GST aimed to create a unified and transparent structure.

In this blog, we will discuss GST on TV, its classification and the HSN Codes and rates of GST, while highlighting how to optimise ITC on television. Keep reading to know more! 

How GST on Television Is Classified?

You can classify the Goods and Services Tax on television by the screen sizes. The GST rate on TVs can range from 18% to 28%. Televisions of 32 inches and below screen size have an applicable GST rate of 18%. On the other hand, televisions with a screen size larger than 32 inches are subject to a GST rate applicable at 28%.

GST on TV or Television and Their HSN Code

Take a look at the table below to understand the total applicable GST rates on television and their HSN Code:

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GST on TV or Television: A Comparison of Pre-GST and Post-GST

During the pre-GST era, there existed multiple indirect taxes. The primary components are:

1. Value-Added Tax (VAT): It is a state-level tax applicable at different stages of the supply chain.
2. Excise Duty: The central government levies central excise duty on the manufacturer.
3. Octroi: Certain cities levy a local tax called octroi on the entry of products.

This taxation system of tax-on-tax led to an increase in the price for consumers, which resulted in the customer paying a higher purchase price for goods.

The sale of television is taxable under GST. This rate depends on the screen size of televisions. The primary components of post-GST on televisions are:

1. State Goods and Service Tax (SGST): This tax is levied on intra-state supplies of goods and services by the state government. The state government collects this tax.
2. Central Goods and Service Tax (CGST): This tax is levied on intra-state supplies of goods and services by the central government. The central government collects CGST.
3. Integrated Goods and Service Tax (IGST): IGST, on the other hand, applies to inter-state supplies of goods and services. The central government collects IGST and the tax revenue is shared between central and state governments.

Example of GST on Television (TV): Pre and Post-GST Scenario

Let us take an example of a LED television with a 30 inches screen size, to find out its cost, including tax:

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Therefore, we can understand that under GST there has been a reduction in prices of televisions, resulting in a lower overall cost to consumers. However, the prices of big-screen and luxury TVs still remain high.

How to Calculate GST on TV? 

To calculate GST on television, you will first need to identify the GST rate which applies to your concerned television. The rate depends on the screen size. If you select a television with less than 32 inches screen size, the applicable GST tax rate will be 18%, and 28% if the screen size is larger than 32 inches.

Follow the steps below to calculate GST on television:

Step 1: Multiply the original price of the television by the rate of GST.

Step 2: To find the final price, add the result (which you derived in the first step) to the base price.

For instance, if the price of a 35-inch television is ₹40,000, the total amount of GST will be ₹11,200. The final cost of television will amount to ₹51,200.

GST Input Tax Credit (ITC) on TV

You are eligible to claim an Input Tax Credit (ITC) on televisions if you use it for business. ITC can be claimed on the Goods and Services Tax that you pay during the purchase of TVs.

Factors Affecting GST on TV

The screen size, brand and specifications are some of the features which primarily affect the applicable GST on TV. Apart from these, there are a few other factors as well. For instance, the type of seller, the purchase place and the warranty policy also affect GST.

For instance, the price of the TV set purchased from an authorised dealer or online shopping is likely to be different from the price of the TV set that you will purchase from a reseller. This is how the type of seller affects the GST on TV.

In the case of a purchase place, the price of a TV set in a local store can vary from the price of a TV in a large retail store.

Warranty can also affect the GST on televisions. A television which comes with the benefit of a warranty is likely to have a higher price than a television with no warranty.

GST on TV Repairs and Maintenance

The cost of repair and maintenance services of television are also subject to GST. The rate on repair ranges between 5% and 18%. The GST rate on the service of extended warranty can start from 18% and go up to 28%.

Conclusion

Proper knowledge of GST on TV is not only important for service suppliers but also for service recipients. For businesses, the input tax credit provision helps offset costs, leading to a more efficient system. Similarly, being aware of the GST structure enables consumers to make more informed and cost-effective purchasing decisions.

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