[Home](/)/[Resources](/resources)/India GST and HSN Classification IndiaGST / Customs # India GST and HSN Classification for Electronics and Hardware Most electronics attract 18% GST in India — but the HSN classification that gets you to that rate also determines your customs duty rate, which varies from 0% (ITA-1 items) to 20% (smartphones). Getting HSN classification right is not just a tax exercise — it has direct import duty consequences that can determine whether India market entry is commercially viable. Copy Link[Share on WhatsApp](https://wa.me/?text=https%3A%2F%2Fkrono-labs.com%2Fguides%2Findia-gst-hsn-classification) At a glance GST rate categories 5 HSN code examples 7 FAQ items 4 ## GST rate categories for electronics 0% GST (Nil rated) **Examples:** Raw agricultural products, life-saving drugs (certain), educational services — not applicable for most electronics Very few electronics fall in this category. 5% GST **Examples:** Renewable energy equipment (solar panels, solar inverters, wind turbines), medical devices (most categories under Schedule II of GST), scientific instruments for research Solar products benefit from concessional 5% GST to support renewable energy. 12% GST **Examples:** Certain industrial machinery, medical grade equipment (specific categories) A transitional rate applied to some equipment. Verify specific HSN sub-heading. 18% GST (standard electronics rate) **Examples:** Smartphones, laptops, tablets, routers, switches, cameras, batteries, LED products, consumer electronics, IoT devices, power tools, industrial instruments This is the default rate for most electronics and IT equipment. IGST at 18% applies on imports too. 28% GST (luxury/demerit goods) **Examples:** Luxury goods, certain high-value consumer items — rare for standard hardware products Not typically applicable to technology products unless specifically classified. ## Key HSN codes for electronics imports HSNDescriptionGST / BCD RateExamples 8471Automatic data processing machines (computers)18% GST; 0% BCD (ITA-1)Laptops, desktops, tablets, servers, thin clients 8517.12Telephones for cellular networks (smartphones)18% GST; 20% BCDSmartphones, mobile phones 8504Electrical transformers, static converters, inductors18% GST; varies BCDPower supplies, inverters, UPS, battery chargers 8507Electric accumulators (batteries)18% GST (Li-ion); BCD variesLithium-ion batteries, lead-acid batteries, battery packs 9018Medical or surgical instruments and appliances5% or 12% GST (category-specific)Blood glucose monitors, patient monitors, diagnostic equipment 8525Transmission apparatus for radio/TV/wireless; cameras18% GSTBroadcast equipment, CCTV cameras, surveillance cameras 8543Electrical machines and apparatus with individual functions18% GSTIoT gateways, electronic control units not elsewhere classified ## Frequently asked questions ### Does GST replace customs duty for imported electronics? No — GST and customs duty are separate levies. On imports, both apply: Basic Customs Duty (BCD) + Social Welfare Surcharge (SWS on BCD) + IGST (applied on assessable value + BCD + SWS). IGST on imports is equivalent to GST on domestic supply and is creditable as Input Tax Credit for GST-registered businesses. For non-GST-registered importers, IGST is a final cost. ### What GST rate applies to IoT devices? Most IoT devices are classified under Chapter 85 or 84 HSN codes and attract 18% GST. If the IoT device is a standalone electronic control unit not classifiable under a specific heading, HSN 8543 (electrical machines with individual functions) is often used — also 18% GST. IoT devices used as medical devices (e.g., connected glucose monitors) may qualify for 5% or 12% GST under medical device classifications — the intended use and regulatory classification matters. ### How many digits of HSN code must appear on invoices in India? GST rules specify HSN digit requirements based on turnover: Businesses with annual turnover above ₹5 crore must use 6-digit HSN codes on tax invoices. Businesses with turnover between ₹1.5 crore and ₹5 crore must use 4-digit HSN codes. Businesses below ₹1.5 crore are exempt from mandatory HSN on invoices (but good practice to include). On import documents (Bill of Entry), the full 8-digit HSN code is always required regardless of turnover. ### Can HSN classification affect customs duty rate significantly? Yes — HSN classification is critical for customs duty. A product classified under one HSN sub-heading may attract 0% BCD (ITA-1), while a different sub-heading for a similar product attracts 20% BCD. Importers frequently apply for advance customs rulings on HSN classification before large shipments to have certainty on duty rate. Incorrect HSN classification is a customs violation and can result in duty demand, penalty, and interest. **Disclaimer:** GST rates and customs duty rates change through annual Union Budgets and GST Council notifications. Always verify current rates on the CBIC portal and consult a qualified customs broker or CA for product-specific HSN classification advice. 🇮🇳 India roadmap for your product Every standard, document, and test that applies — free, no account required. See your free roadmap[ Want an expert to take your product through 🇮🇳 India compliance for you? One consultant from Krono's compliance team takes your product from requirements to legal sale, with a fixed quote before any work starts. See compliance services](/services) Learn this properly In-depth course that teaches the full process, not just this one answer. [Start the course — $149](/courses/04-bis-certification-for-electronics)[Prefer to read? 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