Understanding Goods and Services Tax for GPS and Other Tracking Devices: Rates and HSN Classification
This article provides a detailed overview of the Goods and Services Tax (GST) applicable to GPS and other tracking devices in India. It clarifies when GST is levied on these devices, distinguishing between standalone products and integrated components, and highlights potential government exemptions. The discussion also covers the specific GST rates and Harmonized System of Nomenclature (HSN) codes for various tracking device categories. Additionally, the article explains the conditions for claiming Input Tax Credit (ITC) on these devices, emphasizing eligibility criteria and documentation requirements for businesses.
The Goods and Services Tax (GST) applies to GPS tracking devices when they are sold independently, rather than as an integrated component of a larger item. This article explores the circumstances under which GST is levied on these devices, their specific tax rates, and any government-issued exemptions.
GST Applicability for Tracking Devices
The application of Goods and Services Tax (GST) on tracking devices is determined by several elements, including the device category, its intended function, and the transaction's specifics. GST is typically levied on GPS tracking units when they are sold individually as distinct products. This means if a tracking device is purchased as a standalone item for personal or business use, it will incur GST. Conversely, if these devices are supplied as an integral part of another product, such as being pre-installed in vehicles, smartphones, or smartwatches, a separate GST charge for the tracking device itself may not apply. Additionally, the government offers certain GST exemptions for tracking device supplies. Devices intended for personal use might be exempt, while those utilized for commercial activities are generally subject to GST. Furthermore, the movement of tracking devices with a consignment value exceeding Rs. 50,000 necessitates the mandatory generation of an e-way bill. Standard regulations concerning the place of supply of goods, as defined by the IGST Act, are also applicable to tracking device supplies. Similarly, relevant invoicing and e-invoicing rules must be followed for their sale.
GST Rates and HSN Classification for Tracking Devices
The Harmonized System of Nomenclature (HSN) codes and corresponding GST rates for various tracking devices are presented below:
| Tracking Device Category | HSN Code | GST Rate |
|---|---|---|
| GPS devices | 8526 | 18% |
| Vehicle tracking devices | ||
| Personal tracking devices | ||
| Asset tracking devices |
Tracking devices permanently installed on import containers also benefit from exemptions from both customs duty and GST.
Input Tax Credit (ITC) Eligibility for GPS Tracking Devices
Input Tax Credit can be claimed for tracking devices, provided specific criteria are met. Important considerations for ITC eligibility include:
- Input Tax Credit is permissible solely for tracking devices procured for commercial or business operations. Devices acquired for personal use do not qualify for ITC claims.
- ITC is applicable exclusively when GST has been paid on taxable goods or services.
- The supplier of the tracking device must have accurately applied the GST rate on GPS tracking devices and remitted the collected tax to the government.
- Purchasers must possess a legitimate tax invoice and other necessary records, such as debit notes, credit notes, and delivery challans, at the time of filing for ITC.
- Timely and accurate submission of GST returns by the buyer is crucial for availing the Input Tax Credit benefit.
It is advisable to regularly review the latest amendments to ITC terms and conditions, as they are subject to periodic changes.