Goods and Services Tax (GST) on laptops and computers is crucial in determining the final price of these devices in India. This article will explore the GST rates applicable to laptops, desktop computers, and various related devices, along with their HSN codes. Whether you’re a business owner or an individual buyer,
What is the GST on Laptops?
The GST rate on laptops in India is set at 18% of their maximum retail price (MRP). This fixed rate ensures consistency in pricing across the country, making the tax process simpler for both buyers and sellers. As with other goods, this rate may be revised periodically by the GST council, so it’s important to stay updated on any changes.
GST Rates and HSN Codes for Computer Devices
Items | HSN Code | GST Rate |
GST on Laptops and desktop computers | 8471 | 18% |
GST on Personal computers (PCs) | 8471 30 10 | 18% |
GST on Other portable digital automatic data processing machines | 8471 30 90 | 18% |
GST on Microcomputers | 8471 41 10 | 18% |
GST on Large or mainframe computers | 8471 41 20 | 18% |
GST on Other automatic data processing machines | 8471 41 90 | 18% |
GST on Presented in the form of systems | 8471 49 00 | 18% |
GST on Processing units (other than those of subheadings 8471 41 or 8471 49) | 8471 50 00 | 18% |
GST on Combined input or output units | 8471 60 10 | 18% |
GST on Printers (graphic printer) | 8471 60 24 | 18% |
GST on Plotters | 8471 60 25 | 18% |
GST on Other printers | 8471 60 29 | 18% |
GST on Keyboards | 8471 60 40 | 18% |
GST on Scanners | 8471 60 50 | 18% |
GST on Mouse | 8471 60 60 | 18% |
GST on Other input or output devices | 8471 60 90 | 18% |
GST on Storage units | 8471 70 | 18% |
GST on Floppy disk drives | 8471 70 10 | 18% |
GST on Hard disk drives | 8471 70 20 | 18% |
GST on Removable or exchangeable disc drives | 8471 70 30 | 18% |
GST on Magnetic tape drives | 8471 70 40 | 18% |
GST on Cartridge tape drives | 8471 70 50 | 18% |
GST on CD-ROM drives | 8471 70 60 | 18% |
GST on Digital video disc drives | 8471 70 70 | 18% |
GST on Other storage devices | 8471 70 90 | 18% |
GST on Other units of automatic data processing machines | 8471 80 00 | 18% |
GST on Other data processing machines not included elsewhere | 8471 90 00 | 18% |
Input Tax Credits and Exemptions for GST on Laptops and Computers
Input Tax Credit (ITC)
You can claim an Input Tax Credit on laptops and computers if these assets are used for business purposes. This means the GST you paid when purchasing these devices can be deducted from the GST you collect on sales. To claim ITC, ensure you have valid tax invoices from the supplier and that the devices are used for taxable business activities. Maintaining accurate records is advisable to facilitate a smooth ITC claim process during your GST returns.
GST Exemptions
While most laptops and computer parts are subject to an 18% GST rate, there are no specific exemptions for these items. However, exceptions may apply under broader categories, such as educational institutions or specific government purchases. Always consult the latest GST guidelines or a tax professional to check if any exemptions apply to your situation.
FAQs
Q1. How is GST on laptops and Computers Calculated?
GST on laptops and computers is calculated based on their selling price. The applicable GST rate is 18%.
Example of GST on Laptops and Computers Calculation
If you purchase a laptop priced at ₹50,000, the GST amount would be:
- GST = (Price of Laptop * GST Rate) / 100
- GST = (₹50,000 * 18) / 100 = ₹9,000
Therefore, the laptop’s total price would be ₹50,000 + ₹9,000 = ₹59,000.
Please note: This is a simplified example. The actual GST calculation may vary depending on factors such as applicable discounts or additional charges. It’s always recommended to consult with a tax professional
Q2. What is the applicability of GST on laptops?
GST is now levied at a rate of 18% on laptops, hence taking the total price a little higher than what consumers would have paid in the pre-GST era.
Q3. What is the GST on MacBook?
The GST on a MacBook is 18%, the same rate applicable to all laptops in India.
Q4. What happens if I purchase a laptop or computer from a different state?
If you purchase a laptop or computer from a different state, Integrated Goods and Services Tax (IGST) is applicable. The seller will charge IGST at 18%, which you pay at the point of sale. You can still claim ITC for this IGST if the device is used for business purposes.
Q5. What is the GST rate for laptop accessories?
The GST rate for laptop accessories, such as chargers, keyboards, and mice, is also 18%. This uniform rate applies to most accessories associated with laptops and computers.
