Decoding GST Rate and HSN Codes for Laptops, Computers: Essential for GST Compliance

Home » Blogs » Decoding GST Rate and HSN Codes for Laptops, Computers: Essential for GST Compliance
captainbiz decoding gst rate and hsn codes for laptops computers

Table of Contents

 In the Evolving world of technology, computers and laptops have become an integral part of our daily lives. Whether for work, education, communication or entertainment, these devices have become fundamental requisites. If your business is dealing with the sale of computers and laptops in India, it’s crucial to understand the HSN (Harmonized System of Nomenclature) codes and GST (Goods and Services Tax) rates associated with these products.

Impact of GST on the Digital World

Streamlining the Process

 GST simplified the taxation process by replacing various state and central taxes with a single tax structure. It also reduced the complexity of tax compliance for businesses dealing with computers and laptops.

Evasion of Tax Cascading

Before GST, the taxation system had multiple layers of taxes, leading to tax cascading. GST’s input tax credit mechanism has helped businesses claim credits for the taxes paid on inputs, thereby reducing the overall tax burden.

Uniformity

Under GST, the single tax rate applies to computers and laptops across the country, eliminating the variation in taxes that existed under the previous tax regime.

Boost to Digital India

The GST system aligns with the government’s Digital India initiative by promoting the use of technology in tax administration. This has contributed to the growth of the computer and laptop industry. 

How are GST rates are decided?

GST rate for goods and services is fixed by the GST Council. Over the time, the GST Council changes GST rates based on the recommendations from the members of the Council. With GST tax collection exceeding the projections, the Government is actively considering reductions in GST rates.

Also Read Related Blogs: HSN and GST Rate for Books, Newspapers, Calendars

HSN Code for Laptop

HSN codes under Chapter 84 cover all personal computers, micro-computers, laptops and other related devices manufactured all over India.

The four-digit HSN code for computers is 8471. GST rate for HSN Code 8471 is 18%.

According to the HSN Chapter, the word “automatic data processing machine” means any time of equipment that is capable of:

  1. Storing the processing programme or programmes and at least the data immediately necessary for the execution of the programme;
  2. Being freely programmed in accordance with the requirements of the user;
  3. Performing arithmetical computations specified by the user; and
  4. Executing, without human intervention, a processing programme that requires them to modify their execution, by logical decision during the processing run.

Also, automatic data processing machines need not be a single unit and can be a system consisting of multiple separate units. Any unit that connects to a data processing machine that satisfies the following condition would also be classified as a data processing machine under HSN 8471:

  1. It is of a kind solely or principally used in an automatic data processing system;
  2. It is connectable to the central processing unit either directly or through one or more other units; and
  3. It is able to accept or deliver data in a form (codes or signals) which can be used by the system.

Hence, keyboard, mouse, USB storage devices can be classified under HSN code 8471.

HSN Code for Computers, Printers, Keyboards and Storage Devices:

As stated above 8471 is the common four-digit number used to form various HSN codes that are assigned to computing tools.

847160 is the HSN protocol that represents printing devices. The same six-digit code applies to all input components of the computer system, such as the mouse, scanner, keyboard and so on.

When we move on to the storage instruments like hard disks, flash drives and others then the code gets changed to 847170. 847130 on the other hand, signifies portable automatic data handling digitalised devices that weigh less than 22 pounds. In simple words, 847130 is the six-digit HSN code for personal computers that are used in offices and domestic settings. 

The Bottom Line

It’s essential for businesses to correctly determine and apply the appropriate HSN code to their products to ensure accurate taxation. The HSN code is typically included in invoices and other relevant documents for GST compliance.

Businesses must be aware of the HSN codes applicable to their products, as these codes determine the tax rates and other regulatory requirements associated with them.

Related Read: How Do I Find My 6-digit HSN Code?

Frequently Asked Questions:

  • What is the HSN code for computers and laptops?

8471 -GST HSN Codes for Laptops and Peripherals 

Particulars HSN Code
Laptops, Desktops, and Personal Computers 8471
Printers, Keyboards, and USB Storage Devices 8471
Computer Monitors (Less than 32 inches) 8528
Monitors (Less than 32 inches) 8528
  • What is the HSN code for HP computer?

India imports most of its Hp desktop computers and HSN Code 84715000 from China, Singapore and the United States and is the largest importer of Hp desktop computers and HSN Code 84715000 worldwide. 

  • What is the GST rate for computer HSN code 28?

HSN Code for Laptops & Computers

The four digit HSN code for computers is 8471 and according to this HSN code, 18% GST rate is applicable on Computers

  • What is the GST Rate on laptops and computer devices?

Equipment GST Rate
Desktop monitors (more than 32 inches) 28%
Hard drives 18%
External hard drives 18%
Pen drives 18%
  •  What is the current GST on laptops? 

The 18% GST on laptops, desktops, and their accessories is equivalent to 9% CGST plus 9% SGST. For interstate transfers of these goods, such as e-commerce transactions, IGST at a rate of 18% will be applicable to the products and services.

author avatar
CaptainBiz

Leave a Reply