How-to guides
How to Start a Mobile Shop: Registrations, IMEI Records and Margins
A mobile shop sells expensive, small, easily stolen goods at thin margins, and makes most of its profit on accessories, repairs and service. Getting the paperwork right is quick; getting the stock discipline right is what keeps the shop alive. This guide covers both.
Key takeaways
- Phones are at 18% GST, so most mobile shops cross into GST registration quickly; distributors and buyers expect a GSTIN.
- Record the IMEI of every phone you buy and sell. It is your stock, your warranty record and your protection against stolen goods.
- Accessories and repairs usually carry better margins than handsets; plan the counter around them.
- Used phones bought from customers can be taxed on the margin only, if you claim no credit on them.
Registrations checklist
| What | Who needs it | Where |
|---|---|---|
| GST registration | Compulsory above ₹40 lakh turnover of goods in most states (₹20 lakh if you also earn from repair services); most phone distributors deal only with registered shops | gst.gov.in |
| Shops and establishments registration | As required by your state's Act | State labour department portal |
| Trade licence | Where your municipality requires one | City corporation or municipality |
| Udyam registration | Optional and free | udyamregistration.gov.in |
| Dealer or retailer agreements | For authorised sales of a brand or a telecom operator's SIMs and recharges | The brand, distributor or operator |
| Records for second-hand phones | Some city police require registers of used phones bought; keep the seller's ID either way | Local police station |
Checked on 11 November 2026 against the CGST Act and Notification 10/2019-Central Tax. Repair income is a service, which changes the GST threshold from ₹40 lakh to ₹20 lakh in most states.
Where the margin is
Handset margins are set by brands and distributors and are usually thin, especially on popular models. The steadier money is in screen guards, covers, chargers, cables, earphones, memory cards and repairs, which customers buy at the same visit. Lay out the counter so accessories are in reach while the phone is being set up.
Repairs add a service line to the business. Record each job with the IMEI, the fault, the parts used and the advance taken, and give the customer a slip. Parts and labour are both at 18% GST.
Setting up the first month
- 1Create items for each model and variant with HSN 8517 and 18% GST, and accessories with their own HSN codes.
- 2Record every phone purchased with its IMEI or serial number from the distributor's invoice.
- 3At sale, select the exact IMEI unit, so the same phone can never be sold twice and the warranty start date is recorded.
- 4Set up a repair job card process: booking, status, delivery with the advance adjusted.
- 5Decide your exchange-offer policy and how you value old phones.
- 6Display a UPI QR at the counter and set limits on credit sales; phones on udhar are a common loss.
GST points specific to phones
- Phones, chargers, earphones and memory cards are at 18%; check covers and screen guards by their HSN
- In an exchange offer, GST is on the full price of the new phone; the old phone is part of the payment
- Used phones bought from consumers can be sold under the margin scheme, paying GST only on the margin, if no credit is claimed on them
- A phone handed over at your counter to a visitor from another state carries CGST and SGST; one couriered to another state carries IGST
The numbers to watch
| Number | How to work it out | Why it matters |
|---|---|---|
| Ageing handset stock | Units in stock for more than 60 days, by model | Phones lose value fast when a new model launches |
| Accessory attach rate | Accessory bills ÷ phone bills | The main lever on profit per customer |
| Gross margin by category | Handsets, accessories, repairs separately | An overall margin hides where money is made |
| Repair turnaround | Days from booking to delivery | Slow repairs lose repeat customers |
| IMEI mismatches | Physical count vs IMEI list, monthly | Catches theft and wrong entries early |
Common mistakes
- Selling from a pile of boxes without IMEI-level stock
- Buying used phones without ID and records
- Keeping too many units of a model just before its successor launches
- Charging GST only on the cash part of an exchange
- Treating repairs as cash income outside the books
Where TripleBill fits
TripleBill's mobiles and electronics mode, on the Pro plan, tracks each unit by IMEI or serial from purchase to sale, refuses to sell the same unit twice, prints the warranty end date on the bill and lists warranties ending soon. Repair job cards cover booking with IMEI lookup, status steps, a printed slip with QR, a status page for the customer and billing with the advance applied. GST reports are on Starter and above; you file on the GST portal.
Frequently asked questions
Do I need GST registration to open a mobile shop?
It becomes compulsory once turnover crosses the limit (₹40 lakh for goods only in most states, ₹20 lakh if you also do repairs), but most distributors expect a GSTIN from the start.
What is the GST on mobile phones?
18%, under HSN 8517.
Why record IMEI numbers?
They identify each phone for stock, warranty, returns and theft checks, and stop the same unit being sold twice.
How is GST charged on used phones?
Under the margin scheme, a dealer who claims no input credit on a used phone pays GST only on the difference between selling and buying price.
Is repair work taxed differently from sales?
Repair labour is a service at 18%; parts are goods at their own rate, mostly 18%.
Should I sell phones on EMI?
Consumer finance is arranged by finance companies at the counter; the shop still bills the full price and receives payment from the financier.
About the author
Written by the TripleBill team, the people who build the billing and accounting software this site is about. We check competitor prices on their own websites on the date shown above, and we say so when our product is the weaker choice. This article is general information, not tax advice.
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Related pages
Every phone, by IMEI, from purchase to sale.
Mobiles and electronics mode on Pro tracks units, warranties and repairs.