Mobile HSN Code 8517: Mobile Phone Category & GST Rate Details
What is HSN Code 8517?
HSN Code 8517 covers a wide range of telecommunication equipment, primarily mobile phones and smartphones, including devices for both cellular and wireless networks. This classification ensures uniformity in the GST regime for all hand-held devices with voice and data communication capabilities.
GST Rates & Exemptions for HSN Code 8517
Mobile phones under HSN 8517 attract an 18% GST rate, as confirmed by the September 2025 GST Council meeting. This rate is standard across all phone types (feature phones, smartphones, 5G/4G models) and is not subject to any specific exemptions for end consumers. Accessories like chargers, batteries, and headphones typically fall under related HSN codes but often have the same 18% rate post-reform.
Table Notes
- Rates valid after the 22nd September 2025 update.
- All rates are “all-inclusive” with no compensation cess.
- Accessories may use a related but distinct HSN, though GST remains 18% for most goods.
- ITC rules explained below apply to both devices and qualifying accessories.
GST Rates Applicable Under 8517
What’s Included in 8517 Products?
Under HSN 8517, all devices capable of telecommunication, including basic phones, smartphones, wireless hotspots, and some tablets with SIM capability, are covered. Related communication gadgets (modems, certain routers) may also fall here but check product documentation.
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Key Exemptions Under GST for Mobile Phones
There are typically no GST exemptions for mobile phone purchases under 8517 in the consumer market as of 2025. Some components for infrastructure (network towers, etc.) can have lower rates, but end-user devices remain at 18%.
Input Tax Credit (ITC) Rules for Mobile Phones
Businesses can claim ITC on the GST paid for mobile phones if the devices are used for business purposes and purchased from a GST-registered supplier with a valid invoice. ITC cannot be availed for personal use or for phones given as employee perks. All claims require compliant invoicing and documentation.
GST on Mobile Phones: Practical Scenarios
- For B2C sales, GST at 18% is added to the sale price, split between CGST and SGST (intra-state) or IGST (inter-state).
- For business purchases, ITC can reduce the net cost for companies, but only if the phones are used strictly for work.
- Bundle offers (phone + accessories) may attract the higher rate if the accessory HSN is taxed above 18%, but after GST 2.0 reforms, nearly all related accessories are at 18%.
Common Mistakes in Mobile GST
- Using the wrong HSN code for related accessories (e.g., chargers or headphones).
- Failing to document business usage for ITC claims.
- Overlooking GST on bundled items—always verify tax breakup on the invoice.
Conclusion
HSN Code 8517 clearly standardizes the GST regime for all mobile phones in India, with an 18% rate ensuring consistency nationwide. Businesses can optimize cost through ITC, but must ensure compliant purchase and documentation for claims. The recent GST reforms consolidate mobile devices and accessories into a single slab, streamlining billing and compliance in 2025.
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Vikash
Vikash
FAQs: HSN Code 8517 & Mobile GST
What is HSN 8517?
HSN 8517 covers mobile phones, smartphones, wireless network devices, and other handheld telecom devices for voice/data.
What’s the standard GST rate?
The standard GST rate on mobile phones under HSN 8517 is 18% as of September 2025.
Can ITC be claimed?
Yes, ITC on mobile phones is available for business use, with proper GST invoices and documentation; personal use is not eligible.
Which products or services are tax-exempt?
No GST exemptions apply to mobile phones under HSN 8517 for consumers, barring some industrial and export-oriented network equipment.