In today’s digital age, laptops have become an indispensable tool for individuals across various fields such as business, employment, and education.
As technology continues to reign supreme, it’s crucial for us to consider the potential impact of GST on laptops and computers.
Let’s get the detailed info on GST Rate for Computers and Laptops through this article.
GST Rate for Laptops
The GST rate on laptops has increased from the earlier tax regime, resulting in a slightly higher effective tax rate of 18%.
This may lead to a marginal increase in laptop prices.
To illustrate, let’s consider an example: If you plan to purchase a DELL Inspiron 15, 3000 series laptop for Rs. 35,000, the total cost after GST @18% will be Rs. 41,300, including a GST burden of Rs. 6,300.
|Types of goods||GST rate|
|2. Desktop monitors(<32 inches)||18%|
|3. Desktop monitors(>32 inches)||28%|
|4. Hard drives||18%|
|5. Pen drives||18%|
|6. Optical drives||18%|
GST Rate for Computer, Laptops & other related devices
The HSN code 8471 is assigned to computers and has a GST rate of 18%. Personal computers, laptops, and micro-computers are categorized under Chapter 84 of the HSN, specifically under the heading “Automatic Data Processing Machines and Units”.
According to the HSN Chapter, the term “automatic data processing machine” refers to any equipment that can store processing programs and necessary data, be programmed according to the user’s requirements, perform arithmetic computations as specified by the user, and execute processing programs without human intervention.
Additionally, a data processing machine system can include multiple separate units, and any unit that connects to such a system would be classified under HSN 8471 if it satisfies certain conditions, such as being solely or primarily used in an automatic data processing system, connecting to the central processing unit, and accepting or delivering data in a form usable by the system.
Therefore, devices such as keyboards, mice, and USB storage devices can also be categorized under HSN code 8471.
Types of GST Rate for Computers and Laptops
Laptops, desktops, and their accessories are subject to different types of GST, including CGST (Central Goods and Services Tax), SGST (State Goods and Services Tax), and IGST (Interstate Goods and Services Tax).
The total GST applicable to these products is determined by adding the CGST (50%) and SGST (50%). Therefore, 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.
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