Tariff Structure

Tariff structure applicable to electronics hardware manufacturing Sector

  • 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.
  • Peak rate of Basic Customs Duty (BCD) for most of non-ITA electronic goods is 10% except Cellular Mobile Handsets , Set Top Box for Television, Colour Television, Microwave Ovens, Digital Video Recorder (DVR)/ Network Video Recorder (NVR), CCTV Camera/ IP Camera, Light Emitting Diode (LED) Lamps, Smart Meters on which BCD is 15% / 20%.
  • 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%.
  • 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%. LCD/ LED TVs attract GST of 28%.