GST on iPhone – Latest Tax Rates and Price Impact in India

Dev spent ₹1,08,000 on an iPhone 15 Pro in Haridwar (Uttarakhand), and the amount included 18% GST. You pay less for the phone, and the rest is made up of taxes.

Here’s how it breaks down:
 

Explanation:
 

• The original price of the iPhone was ₹91,525.
   
• GST (18%) is added: ₹16,475.
   
• So, Dev pays ₹1,08,000 in total.

The tax on goods and services we buy is called GST. The government gets 18% of the iPhone’s price in taxes.

Different Categories of iPhone with Price and Applicable GST Rate

Buying an iPhone is what Dev wants, but he doesn’t know what the prices and GST rates are. The following table shows the various iPhone models, their prices, and the 18% GST applied in India.

iPhone Models with Prices and GST:
 

Key Points:
 

• All iPhones in India have an 18% GST included in their price.
   
• The actual phone price (before tax) is lower than what Dev pays.
   
• For example, if Dev buys the iPhone 15 for ₹78,000, ₹11,900 is tax.
   
• The more expensive the iPhone, the higher the GST amount.

This helps Dev understand how much tax he is paying on different iPhone models.

Mentioning iPhone Types with Their Respective HSN Codes

Dev wants to understand the HSN codes for different iPhone models because these codes are used for GST calculations in India. HSN (Harmonised System of Nomenclature) is a global system to classify goods for taxation. Here’s a simple breakdown:

iPhone Models with Their HSN Codes and GST Rates:
 

Key Points:
 

• All iPhones fall under HSN Code 8517 12 90 because they are smartphones with cellular network capability.
   
• The GST rate for all iPhones in India is 18%, regardless of the model.
   
• When Dev buys an iPhone, the seller uses this HSN code in the invoice for tax calculation.
   
• Even if Dev imports an iPhone, the same HSN code applies for customs and GST.
   

Example:
 

• If Dev buys an iPhone 15 Pro for ₹1,08,000 (including 18% GST), the invoice will mention:
   
  • HSN Code: 8517 12 90
     
  • Taxable Value: ₹91,525
     
  • GST (18%): ₹16,475

Why This Matters?
 

• Helps Dev verify if the correct GST is charged.
   
• Useful for warranty claims or business purchases where tax details are needed.
   
• Ensures transparency in billing.

This way, Dev can check his bill and confirm that the right HSN code and GST are applied.

Types of iPhones and Their GST Applicability:
 

Dev wants to pick up an iPhone, but he does not understand all the types and how much GST he will have to pay. The same tax rate under GST applies to every iPhone purchased in India. Let me explain what GST rates apply to each iPhone type:

iPhone Models and Their GST Rates:
 

Key Points:
 

• All new iPhones in India attract 18% GST, whether it’s the latest model or an older one.
   
• The total price Dev sees in the store or online already includes GST.
   
• For example, if Dev buys an iPhone 15 for ₹78,000, the actual phone cost is ₹66,100, and ₹11,900 is GST.
   
• *Refurbished iPhones (repaired/renewed) also have 18% GST, but their base price is lower.*

Why This Matters for Dev:
 

• Helps Dev compare prices fairly, knowing GST is the same for all iPhones.
   
• If Dev checks a bill, he can confirm that 18% GST is correctly applied.
   
• No surprises: the price tag shows the final amount including tax.

This way, Dev can focus on choosing the right iPhone without worrying about different tax rates.

Impact of GST on the iPhone Industry
 

• Since there was VAT and excise on iPhones before GST, their prices were higher. An 18% GST has been introduced as a nationwide tax.
   
• As an example, Dev purchases an iPhone 15 that costs ₹78,000, and he pays ₹11,900 as GST. 
   
• There may have been larger tax costs earlier on because taxes vary from state to state.
   
• GST changed prices so that iPhones were the same in each place, making it easier for Dev to check prices.
   
• Apple is now able to get input tax credits for manufacturing and logistics, which lowers the total expenses slightly.
   
• But due to the 18% GST, iPhones in India are more expensive than in places where the tax is lower, so Dev has to pay more.
   
• Since refurbished iPhones are taxed at 18% GST, they are out of reach for those who want budget phones, such as Dev’s friend.
   
• All in all, GST made it clearer to see iPhone prices, yet it didn’t help Dev much in the area of reduced costs.

Input Tax Credit (ITC) on iPhone

When buying iPhones for ₹1,00,000 from the mobile shop, Dev pays ₹18,000 as GST. After he sells the iPhones for ₹1,20,000, Dev charges each customer ₹21,600 as GST. Dev can deduct the ₹18,000 GST he spent from the ₹21,600 GST he was given. Because of the scheme, Dev saves ₹18,000, as he only pays ₹3,600 instead of the required ₹21,600. 

The name of this system is Input Tax Credit (ITC). It stops Dev’s shop from paying tax on tax, which makes the iPhone cheaper for everyone who buys it and ensures the authorities get exactly the right amount.

Conclusion

iPhones in India are relatively costly due to the GST that is imposed on them, along with the 18% slab. This tax is imposed on the original price, thus making the overall price higher for buyers. 

But, when the iPhone is manufactured in India, then a GST of 18% is applicable, but the price could be on the lower side because of lower import cost. The government levies this tax to enhance domestic production and generate tax revenue. 

Although it increases the price of iPhones, it contributes to the funding of public services. That is why when you purchase an iPhone, some of your money will be paid as tax to help in the growth of the country.

FAQS

What is the GST rate on iPhones in India?
All iPhones sold in India have an 18% GST included in their price, whether new or refurbished.

Why do iPhones cost more in India than abroad?
Apart from GST, import duties and other taxes increase the price compared to countries with lower taxes.

Does GST make iPhones cheaper or costlier?
GST simplified taxes but didn’t reduce iPhone prices much—buyers still pay 18% tax on the full price.

Can I get a refund on GST if I return my iPhone?
Yes, if you return it within the return period, the GST amount will be refunded along with the phone’s price.

Do refurbished iPhones have the same GST rate?
Yes, even refurbished iPhones have 18% GST, but their base price is lower than new ones.

Is GST different in different states for iPhones?
No, GST is the same (18%) across all states, so an iPhone costs the same in Delhi or Mumbai.

How is GST calculated on iPhones?
If an iPhone costs ₹50,000 before GST, 18% tax (₹9,000) is added, making the final price ₹59,000.

Can businesses claim GST (ITC) on iPhones?
Yes, if a business buys iPhones for work, it can claim an Input Tax Credit (ITC) on the GST paid.

Do I pay GST on iPhones bought from abroad?
Yes, if you import an iPhone, you pay customs duty + 18% GST on its declared value.

Why is GST charged on iPhones?
GST is a tax on goods and services in India, and iPhones, being electronic goods, fall under the 18% slab.
 

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