Current GST Rates on Computer & Laptops with Accessories

The 56th GST Council meeting fixed tax rates to align with economic requirements, public demand, and industry needs. Following the meeting, the tax structure was simplified. All goods and services are now tax under a few specific slabs across different categories. These rates are linked to the Harmonised System of Nomenclature (HSN) for uniformity and compliance.

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Here, we will discuss the GST slab rate and HSN code considered for computers and laptops.

GST Rates on Computer and Laptop with Accessories

For complete information on the GST rates for laptops and computers/desktops, we showcased all the details of GST rates on such products. We will be imparting all the GST rates applicable to the concerned users

How are GST Rates Determined?

GST council determines the GST rate for goods and services, which keeps altering from time to time on the suggestions and approval of the GST council members. As the GST tax collection is surpassing the projections, the Government is sincerely taking measures to reduce the GST rates. In this way, considering the current scenario and on the basis of recommendations of members of the GST council meeting, GST rates are fixed.

GST Rate and HSN Code

Harmonised System Nomenclature (HSN) is an ad hoc system for ascertaining the GST rate for goods because all GST rates for goods are linked with the HSN code, which identifies the rate of tax applicable to a good/ product in a Nation. Once we know the HSN code, we can easily determine the GST rate applicable.

HSN Code for Computers & Laptops

Chapter 84 of the HSN defines the HSN code for personal computers, micro-computers and laptops, under the heading “Automatic Data Processing Machines and Units”. The four-digit HSN code for computers is 8471, and according to this HSN code, an 18% GST rate is applicable on Computers.

Read also: GST Rates Applicable to Mobile Phones

According to Chapter 84 of the HSN, equipment comes under the heading “Automatic Data Processing Machines and Units” if it can :

• Store the processing programme/ programmes and the data instantly, which is crucial for the execution of the programme.
• Be programmed in accordance with the user’s needs.
• Perform arithmetic calculations as required by the user.
• Execute a processing programme that requires them to modify their execution, by logical conclusion at the time of processing run, automatically (without human interference).

Note: Automatic data processing machines need not necessarily be a single unit. A system comprising various separate units can also be an automatic data processing machine.

These units, which are connected to a data processing machine, would also be classified as a data processing machine under HSN 8471 if :

• It is of a kind only or principally used in an automatic data processing system.
• It can be connected to the CPU either directly or via one or more other units.
• It can accept/deliver data in code and signal forms, used by the system.
• So, USB storage devices, keyboard, and the mouse can also be classified under HSN code 8471.

HSN Code for Computers, Printers, Keyboards and Storage Devices

• 8471 – Four-digit HSN Code for computers, desktop PCs, laptops, and other kinds of personal computers.
• 8471 – Four-digit HSN code for USB storage devices, keyboards and printers.
• 847160 – Six-digit HSN code for printers.
• 847160 – Six-digit HSN code for mouse, keyboard and other input devices.
• 8471 70 – Six-digit HSN code for hard disks, USB drives and other storage devices.