Tariff Structure

1. Tariff structure applicable to electronics hardware manufacturing Sector

  • Peak rate of Basic Customs Duty (BCD) is 10%.
  • The Goods and Services Tax (GST) rates for most of the goods and services are 5%, 12%, 18% and 28%. Electronic goods are mostly at 18%. Cellular mobile handsets are at 12%.
  • BCD on 217 tariff lines covered under the Information Technology Agreement (ITA-1) of WTO is 0%.
  • All inputs required in the manufacture of ITA-1 goods are exempted from BCD subject to actual user condition.
  • BCD on specified raw materials/ inputs used for manufacture of electronic components is 0%.
  • BCD on specified capital goods used for manufacture of electronic goods is 0%.

2. Promotion of indigenous manufacturing of Digital Payment Devices:Following goods and parts/ components for use in the manufacture of these goods, subject to actual user condition, have been exempted from Basic BCD vide S.No.468 of Notification No.50/2017-Customs dated 30.06.2017:

(i) Micro ATMs as per standards version 1.5.1;

(ii) Fingerprint reader / scanner;

(iii) Iris scanner;

(iv) Miniaturised POS card reader for mPOS (other than Mobile phone or Tablet Computer).

3. Promotion of indigenous manufacturing of LED (Light Emitting Diode) Lights: BCD on all parts for use in the manufacture of LED lights or fixtures including LED lamps has been reduced to 5%, subject to actual user condition vide S.No.471 of Notification No.50/2017-Customs dated 30.06.2017, as amended from time to time. BCD on all inputs for use in the manufacture of LED driver or MCPCB (Metal Core Printed Circuit Board) for LED lights and fixtures or LED lamps has also been reduced to 5%, subject to actual user condition vide S.No.472 of Notification No.50/2017-Customs dated 30.06.2017, as amended from time to time.

4. Increase in Basic Customs Duty on identified electronic goods to promote their indigenous manufacturing:Vide Notification No.91/2017-Customs and Notification No.92/2017-Customs both dated 14.12.2017, Basic Customs Duty (BCD) has been increased from 10% to 15% on Cellular Mobile Handsets, CCTV Camera/ IP Camera, Digital Video Recorder (DVR)/ Network Video Recorder (NVR) and Electricity Meters and from 10% to 20% on Set Top Boxes for Televisions, Colour Televisions, Microwave Ovens and Light Emitting Diode (LED) Lamps.