GST on Laptops in India

The GST on laptops is beneficial for consumers and businesses. It is because laptops is crucial for work, education, and entertainment in India. So, many buyers should know about the GST rate for buying laptops. They also should know how it impacts their budget. The Goods and Services Tax (GST) affects the final price for payment. They also wants to know how it impacts their budget. The Goods and Services Tax (GST) affects the final price for payment. Thus, you must know the exact GST rate for laptops. In this blog, you will get guidance on GST rate for laptops, HSN code, and more.

How was tax charged on laptops before GST?

A rate of 14 to 15% was charged on the sale of laptops before GST. It is based on the state where the sale was made.

Applicability of GST on laptops

The applicability of GST on laptops attracts an 18% rate on their maximum retail price (MRP). This rate makes the total price a bit higher than what the consumer paid before GST. The rate helps to make taxes simple for both buyers and sellers. This rate can change from time to time, like other products, by the GST council. So, it is important to keep informed about any updates.

What is the GST rate of a Computer?

The GST rate on computers is the same as that laptop. So, the GST rate is 18%. This rate is also applicable to desktop accessories in India.

HSN code for Laptops and Computer devices

Laptops and desktops fall under Chapter 84 of HSN (Harmonized System of Nomenclature). These are found in chapter 8471. The chapter is about “Automatic data processing machines and units, magnetic or optical readers". It also covers "machines for transcribing data onto data media in coded form and machines for processing such data”.

The chapter consists of personal computers, laptops and micro-computers. Listed below are the HSN codes on computer devices and accessories under chapter 84:

8471:

A four-digit HSN code covers laptops, desktops and other personal computers. This code also covers the printers, keyboards and USB storage devices.

8528:

A four-digit HSN code covers the computer monitors that are not more than 32 inches. It also applies to monitors compared to monitors not exceeding 32 inches.

8443:

This code applies to printers

8471:

This four-digit code also covers the computer keyboards, mouse, and other input devices. It also includes USB drives, hard disks and other storage devices.

GST Rate on Laptops and Computer Devices

Below is the table outlining the complete GST rate list on laptops, desktops and other computer accessories:    

How to Calculate GST on Laptops and Computers?

The GST on laptops and computers are calculated on the basis of selling price. So, the standard GST rate is 18%. You must apply the applicable GST rate to the item's selling price to calculate it. The formula is "GST Amount = (Selling Price x 18) / 100". Then, you need to add this to the price for the total. In case of the businesses, this rate can be paid as Input Tax Credit (ITC) to lower their taxes. Most computer accessories attracts a 18% GST rate under HSN code 8471.

Types of GST Applicable to Laptops, Desktops and Accessories

Here are the types of GST applicable to laptops, desktops and their accessories:

a) CGST (Central Goods and Services Tax)

b) SGST (State Goods and Services Tax)

c) IGST (Interstate Goods and Services Tax)

The total GST rate on laptops and desktops is equal to CGST (50%) + SGST (50%). This means there is an 18% GST rate applies to laptops, desktops and their accessories. It is divided into 9% CGST + 9% SGST. In case of inter-state transfer of these goods like ecommerce transaction, 18% IGST will apply to these products and services.

Input Tax Credit (ITC) for GST rate on Laptop

Input tax Credit (ITC) can be claimed on laptops and computers when the assets are used for business. You can subtract the GST that you paid when buying these devices from the GST you collect on sales. It is important to have tax invoices from the supplier to claim ITC. These device are applicable for taxable business activities. You must maintain accurate records for ITC claiming process during the GST returns.

What are the GST Exemptions for Laptops?

There are no specific GST exemptions for laptops. It is because they attract an 18% GST rate under HSN Code 8471 in India. In some cases, exemptions may apply for categories like educational institutions, or specific government purchases.

Conclusion

You should understand the GST on laptops that attracts 18% rate across India. The 8471 is the HSN (Harmonized System of Nomenclature) code for laptops. This code shows that laptops and desktops are charged under the GST regime in India. So, businesses and consumers must be aware of the GST rate for laptops. If you have any queries about it, contact Online Legal India.  

FAQ

Q1. What is the GST on laptops?

The GST on laptops is 18%. This rate applies to all laptops in India

Q2. How does GST impact the price of laptops?

The GST rate on laptops has increased from 14% to 15%. Then, it attracts to 18% GST rate after the implementation of GST. This can lead to a marginal increase of prices for laptops.

Q3. What is the GST rate for laptop accessories?

The GST rate for laptop accessories is also the same as that laptop, which is 18%. The accessories can include chargers, keyboards, and mice and so on. Large monitors attracts 28% GST.

Q4. Can I claim the GST return on my Laptop?

If you are a registered business or taxpayer, then you may claim a GST return on your laptop.

Q5. Can a registered business under GST claim ITC on laptop purchases?

Yes, a registered business under GST can claim ITC on laptop purchases.

Disclaimer

This article is for informational purposes only and does not constitute legal advice. Online Legal India is a digital platform. If you require legal assistance, we strongly recommend consulting a qualified lawyer or law firm.