GST Council has fixed the GST rate for goods and services but time to time the council members reduce the GST slab rate as per the demand of people and businesses. All the goods and services are taxed under seven slabs – 0%, 0.25%, 3%, 5%, 12%, 18% and 28% on the basis on Harmonized System Nomenclature (HSN), they are linked to.
Here, we will discuss the GST slab rate and HSN code considered for computers and laptops.
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GST Rates on Computer and Laptop with Accessories
For complete information on the GST rates for laptops and computers/desktop, we showcased all the details of GST rates on such products. We will be imparting all the GST rates applicable for 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. Like as the GST tax collection is surpassing the projections, the Government is sincerely taking measures for reducing the GST rates. In this way, well-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
Harmonized System Nomenclature (HSN) is an ad hoc for ascertaining the GST rate for goods because all GST rates for goods are linked with 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, 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 need.
- Perform arithmetic calculations as required by the user.
- Execute a processing programme which 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 of 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 C.P.U either directly or via one or more other units.
- It can accept/deliver data in codes and signal forms, used by the system.
- So, USB storage devices, keyboard, 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.
| Equipment Type | GST Rates |
|---|---|
| Laptop | 18% |
| Desktop Computer | 18% |
| Optical Drives | 18% |
| Memory Chips (RAM) | 18% |
| Hard Drive | 18% |
| External Hard Drive | 18% |
| Pen Drive | 18% |
| Desktop Monitor (upto 32 inches, LED/LCD) | 18% |
| Desktop Monitor (more than 32 inches, LED/LCD) | 28% |
| Laptop Adapter | 28% |
