HSN Code for Mobile Phone with GST Rate 2026: Smartphones & Accessories

The HSN code for mobile phones is 8517. Smartphones are classified under 8517 13 00 and other mobile phones, such as basic keypad phones, under 8517 14 00. Every item of heading 8517 is taxed at 18% GST under Schedule II, S. No. 490 of Notification 9/2025-Central Tax (Rate). The rate did not change in the GST 2.0 reform of 22 September 2025.

This page gives the full code list for phones, accessories and spare parts, explains why the GST portal still shows older codes like 8517 12 11, and covers the questions mobile shops actually face: exchange offers, refurbished phones, repair bills, bundles, input tax credit and imports.

HSN codes for mobile phones

The search box above lists every eight-digit line under 8517 with its rate. For a phone shop, the two lines that matter are 8517 13 00 for smartphones and 8517 14 00 for everything else that works on a mobile network.

Why you still see 8517 12 11 and 8517 12 19

Many websites, and even Google's AI answers, still give 8517 12 11 (mobile phones other than push-button type) and 8517 12 19 (push-button type). These were the codes before 1 January 2022. The WCO's HS 2022 edition split old sub-heading 8517 12 into two new ones: 8517 13 for smartphones and 8517 14 for other cellular phones. India adopted the change through the Finance Act, 2021, which amended the Customs Tariff from 1 January 2022.

The GST portal's HSN directory still carries both the old and new lines, so the e-invoice and e-way bill systems accept either. But customs uses only the current tariff. Use 8517 13 00 or 8517 14 00 in your item master, and an importer or exporter must use them on the bill of entry or shipping bill. Keeping old codes in your billing software is the most common reason we see a phone shop's purchase register and sales register not matching on code.

Which HSN digits to show on a mobile bill

The rule comes from Notification 78/2020-Central Tax. Many shops print the full eight digits on every bill, which is allowed and saves trouble when a customer is a business that wants to claim credit. Accessories on the same bill need their own codes; they never share 8517.

GST rate on mobile phones in 2026

Mobile phones attract 18% GST: 9% CGST and 9% SGST when the buyer is in your state, or 18% IGST when the phone goes to another state. There is no compensation cess on phones.

• Before April 2020: phones were taxed at 12%.
• From 1 April 2020: the GST Council, in its 39th meeting, raised the rate to 18% to fix the inverted duty problem phone makers faced, since many parts were already at 18%.
• From 22 September 2025: the GST 2.0 reform moved TVs, ACs and monitors from 28% to 18% but left phones at 18%. Notification 9/2025 lists "8517 – All goods" at S. No. 490 of Schedule II.

So a phone sold for ₹20,000 before tax carries ₹3,600 GST, and the bill is ₹23,600. If the price you quote already includes GST, the tax inside it is price × 18 ÷ 118. On ₹23,600 that is ₹3,600.

The search result for 8517 shows "5% or 18%". The 5% is not for phones sold in shops. It comes from separate entries for specified renewable energy devices and their parts, where a part of heading 8517 is supplied for that purpose. For ordinary mobile phones, the rate is 18%.

HSN codes and GST rates for mobile accessories

Accessories are classified by what they are, not by the phone they go with. Billing a charger or earphones under 8517 is a classification error even when the rate is the same.

Some older articles still show 28% for chargers, power banks and leather cases. Those rates were cut to 18% years ago, and after 22 September 2025 there is no 28% slab at all for these goods.

Spare parts: display, battery, PCB and others

• Display modules: since HS 2022, flat-panel display modules have their own heading, 8524. LCD modules for smartphones are 8524 11 20 and OLED modules 8524 12 20. Many repair shops still bill displays under 8517 79, which is out of date.
• Batteries: 8507 60 00 (lithium-ion), not 8517.
• Mounted circuit boards: 8517 79 10.
• Other parts (back panels, camera modules, speakers made for phones, charging ports): generally 8517 79 90, unless a more specific heading names them.

All of these are at 18%. The code still matters, because a parts dealer's GSTR-1 HSN summary is compared with buyers' records and e-way bills.

Mobile repair: goods or service?

Repair labour is a service. Its SAC is 998716, "maintenance and repair services of telecommunication equipments and apparatus", taxed at 18%. When a repair shop replaces a screen, the bill should normally show two lines:

The rate is the same on both lines, so the tax does not change. What changes is that your HSN summary in GSTR-1 shows the part correctly, and you can claim credit on the parts you buy. Under a manufacturer's warranty, the brand usually bears the cost, but the authorised service centre still issues a tax invoice to the brand.

Exchange offers: GST on the full price

When a customer hands in an old phone and pays the balance, GST is charged on the full price of the new phone, not on the balance paid. The exchange is treated as two transactions: you sell a new phone, and you buy an old phone.

• New phone price ₹30,000 (taxable value), old phone taken at ₹6,000, customer pays the difference.
• GST on the new phone: 18% of ₹30,000 = ₹5,400, not 18% of ₹24,000.
• The old phone bought from an individual carries no GST on your purchase. Keep a purchase voucher with the customer's name, ID and the phone's IMEI.

A discount shown on the invoice before the sale does reduce the taxable value. A cashback from a bank or card company after the sale does not.

Refurbished and second-hand phones: the margin scheme

A dealer who buys used phones and resells them without changing their nature can pay GST only on the margin, under Rule 32(5) of the CGST Rules:

• Taxable value = selling price minus purchase price.
• The condition is that no input tax credit was claimed on the purchase of that phone. In practice the scheme is used for phones bought from individuals.
• If the margin is negative, no GST is payable on that sale.
• Minor repairs that do not change the phone's nature, such as a new battery or screen guard, do not stop the scheme. The cost of such parts bought with GST is a separate matter; keep it on a separate record.

Example: a phone bought from a customer for ₹8,000 and sold for ₹9,770 has a margin of ₹1,770. That margin is treated as tax-inclusive, so the taxable value is ₹1,500 and GST is ₹270. The HSN stays 8517.

Bundles: phone, charger and earphones in one box

A phone sold in its box with a charger and cable, for one price, is a composite supply. The principal supply is the phone, so the whole price is taxed under 8517 at 18%. You do not split the box price.

It is different when the shop adds items. A phone at ₹15,000, a cover at ₹299 and a tempered glass at ₹199 sold as three items should be three lines with three codes, even though all are at 18%. A "combo offer" with one price for separately sold items is a mixed supply, taxed at the highest rate among them; with everything at 18%, the rate does not change, but showing each line keeps your stock and HSN summary correct.

Can a business claim input tax credit on mobile phones?

Yes, if the phone is used in the course of business. Mobile phones are not in the blocked list of Section 17(5) of the CGST Act. The conditions are the usual ones under Section 16:

• A tax invoice in your business name with your GSTIN.
• The invoice appears in your GSTR-2B (the supplier has filed GSTR-1).
• You have received the phone, and the supplier has paid the tax.

Credit is not allowed on a phone bought for personal use, and goods given as gifts to employees or others are blocked by Section 17(5)(h). For phones used partly for business, the credit has to be split under Rule 42. A phone issued to an employee as a work tool and recorded as a company asset is business use.

GST on imported mobile phones

An imported phone pays basic customs duty first, then IGST of 18% on the assessable value plus the duty. The Union Budget of July 2024 cut the basic customs duty on mobile phones, mobile PCBAs and chargers from 20% to 15%. A registered importer can claim the IGST paid at customs as input tax credit, through the bill of entry data on the GST portal. Customs uses 8517 13 00 or 8517 14 00; the old 8517 12 codes are not accepted on a bill of entry.

Recharges and telecom services

A mobile recharge or postpaid bill is not a sale of goods. Mobile telecommunication services fall under SAC 998413 and internet access under 998422, both at 18%. A shop that sells recharges as an agent on commission should account for its commission income as a service at 18%; it does not need the phone's HSN code for this.

Free gifts, warranty replacements and "free" accessories

• Free screen guard or cover with a phone: if it is part of the deal and the customer pays one price, it is not free in GST terms. CBIC Circular 92/11/2019-GST says offers like "buy one, get one" or a free item with a purchase are supplies for one price, and the shop keeps its credit on the "free" item.
• Truly free items: a sample or gift given away with nothing bought is not a sale, but the credit on it must be reversed under Section 17(5)(h).
• Replacement under warranty: when a brand or service centre replaces a faulty phone or part under warranty without charging the customer, no GST is charged to the customer. The service centre recovers the cost from the brand with a tax invoice, and the brand does not reverse credit on parts used, as clarified in Circular 195/07/2023-GST.
• Extended warranty sold separately: a paid extended warranty is a service at 18%, billed on its own line.

Selling phones online

• TCS: marketplaces deduct tax collected at source at 0.5% of net taxable sales (0.25% CGST plus 0.25% SGST, or 0.5% IGST) under Section 52. It appears in your electronic cash ledger and can be used to pay tax.
• IMEI and HSN on the listing: platforms ask for HSN and rate per listing. Use 8517 13 00 for smartphones. A wrong code on the listing repeats on every invoice the platform generates.
• Returns: a returned phone needs a credit note, which reduces your tax in the month you issue it, within the time limit of Section 34.
• Place of supply: online orders to other states are IGST, even if you sell the same model with CGST and SGST in your own store.

Setting up a mobile shop's item master

Most HSN errors in mobile shops start in the billing software, where someone created one category called "Mobile" and put everything under it. A clean setup takes an hour and saves months of mismatches:

Record the IMEI on every phone sale and purchase. It is not a GST requirement on the invoice, but it is the evidence that links a used phone you bought to the one you sold under the margin scheme, and it answers most queries about stock.

Common mistakes we fix for mobile shops

Everything billed under 8517

Phone, charger, cover and earphones all under one code. The rate matches, so the shop thinks it is fine, but the HSN summary in GSTR-1 shows only phones, and the stock records never match.

GST charged on the amount after exchange

This under-pays tax on every exchange sale. On ten ₹30,000 phones with ₹6,000 exchange each, the short payment is ₹10,800 for the month, plus interest under Section 50.

CGST and SGST on an online order to another state

For an order shipped to another state, the tax is IGST. Paying CGST and SGST by mistake means paying IGST again and waiting for a refund of the wrong tax.

Old 8517 12 codes in the item master

They pass on the GST portal, but they fail at customs and confuse buyers who use the new codes. Update the master once.

Margin scheme on phones bought with GST

A phone bought from a registered dealer on a tax invoice, with credit taken, cannot go through the margin scheme. Either reverse the credit or charge GST on the full sale price.

GST registration for a mobile shop

A shop selling only goods must register once its turnover crosses ₹40 lakh in a year (₹20 lakh in some special category states). A shop that also does repairs is a mixed supplier, and the limit is ₹20 lakh. Selling on an e-commerce platform or to buyers in other states needs registration from the start, with limited exceptions. If you are setting up, our GST registration service handles the application, and our tax consultants can set up your item master with the right codes. You can check any other product in the HSN code finder or the GST rate finder.

Official sources: CBIC rate notifications (Notification 9/2025-Central Tax (Rate), Schedule II, S. No. 490) · GST portal: Search HSN Code.