In today’s time, smartphone has become a necessity for every person. Every person, from poor to rich, cannot live without a phone, because the facility of every government scheme is available on the phone. However, do you know how much tax has to be paid on buying a phone? Yes, after purchasing a smartphone, you have to pay tax on every accessory including charger, screen guard and cover. In this way, the phone in your hand reaches after paying various taxes.
how much tax on whom
Mobile phones and mobile accessories have been kept under Goods and Services Tax i.e. GST. At present, 12 percent tax has to be paid on mobile phones. Whether you are buying a simple feature phone or a smartphone, every person will have to pay 12 percent GST. Similarly, 18 percent GST is being charged on mobile electronic accessories.
Meaning if you buy a phone worth Rs 1000, you have to pay Rs 120 tax. However, this tax is collected along with your smartphone. In this case you do not feel taxed. Similarly, tax of Rs 1200 is paid on phones worth Rs 10,000, tax of Rs 6000 on phones worth Rs 50 thousand and tax of Rs 12 thousand on phones worth Rs 1 lakh.
Tax on mobile accessories
The scope of tax does not end here, after that if you have to buy the charger separately, then you will have to pay 28 percent GST. Meaning if you buy a charger worth Rs 1000, there will be a tax of Rs 280 on it. 28 percent GST is also applicable on installing leather case and back cover on the phone. Additionally, 18 percent GST is levied separately on plastic and glass screen guards.
Tax on battery and charger
If your phone’s battery gets damaged, and instead of installing a new battery you buy a power bank, then you have to pay 28 percent GST on it. If you want to change the phone’s battery, then 28 percent GST has to be paid on that battery. If you buy earphones to listen to songs, then 18 percent GST is applicable on them. Similarly, 18 percent GST is applicable on memory cards and 18 percent GST on headphones and speakers.
What is the total tax on a phone?
In this way, if you buy a phone with which charger, screen guard, back cover and headphones are not available as accessories, then you have to pay tax at many levels. Suppose, you bought a phone worth Rs 10,000, then the tax is Rs 1200, the price of charger and headphones is Rs 1000, then GST will be Rs 280 on charger and Rs 180 on headphones. Also, if you buy a screen guard and cover worth Rs 200, you will have to pay tax of Rs 56 on the cover and Rs 36 on the screen guard. In this way, tax of Rs 1,752 is charged on your phone and its accessories.