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Key Highlights
- Laptops were subject to VAT (value-added tax) in the pre-GST era. The tax rate varied depending on the state in which the sale was made.
- Laptops, computers, and computer devices like hard drives, pen drives, and printers, among others, are subject to GST.
- The applicable rate of GST on laptops, computers, and other devices is available on the official website of Central Board of Indirect Taxes and Customs .
Goods and services tax (GST) was implemented on 1 July 2017, replacing multiple indirect taxes like service tax, VAT (value-added tax), etc. Eliminating the cascading effect of taxes, GST introduces uniformity in the tax structure. This brought about a change in the taxation of various goods and services.In this blog, we centre our discussion on GST on which is one of the most commonly used devices by professionals, business persons, the salaried, and others. Read on to understand the tax structure in the pre-GST period, the current applicable rates, and the HSN (harmonised system of nomenclature) codes. Also Read: How Does GST Work in India?
Tax on Laptops Before GST
Before exploring the GST rate on let’s understand the taxation before the GST era. Before the implementation of GST, laptops were subject to VAT. The rate of tax varied according to the state in which the sale was made. GST on Laptops The current GST rate on laptops is 18%. Besides, desktop and computer devices like hard drives, pen drives, and printers, among others, are also subject to GST.Here is a tabulation of the applicable GST rate on laptops and computer devices, along with the respective chapters of HSN codes as listed on the official website of Central Board of Indirect Taxes and Customs . The table defines laptops, computers and other devices as described on the official website.
| Chapter/Heading/Sub-Heading/ Tariff Item*1 | Description | IGST*2 |
| 8471 | Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included. | 18% |
| 8528 | Computer monitors not exceeding 32 inches. | 18% |
| 8443 | Printing machinery used for printing by means of plates, cylinders and other printing components of heading 8442; other printers, copying machines and facsimile machines, whether or not combined; parts and accessories thereof. | 18% |
| 8471 | Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included. | 18% |
Source: https://cbic-gst.gov.in/gst-goods-services-rates.html *1 Get the respective HSN code details at https://services.gst.gov.in/services/searchhsnsac *2 IGST (Integrated Goods and Services Tax) = CGST (Central Goods and Services Tax) + SGST (State Goods and Services Tax)
Account for GST on Laptops And Comply with All Relevant Regulations
Knowledge about the GST regulations and your tax liability helps you follow the applicable rules and prevent any defaults that could lead to non-compliance issues. To calculate your liability, you can use an online GST calculator.Regarding compliance, ensure that you meet other regulatory requirements, like the timely repayment of loans. Whether a personal loan, secured loan, or unsecured loan, delayed repayments can impact your credit score. This, in turn, may reduce the possibility of getting a loan in the future on favourable terms and conditions.
FAQS - FREQUENTLY ASKED QUESTIONS
What is the rate of GST on a laptop?
The rate of GST on laptops is 18%.
How were laptops taxed before the implementation of GST?
Before the implementation of GST on laptops, they were subject to VAT (value-added tax). The tax rate varied according to the state in which the sale was made.
Apart from GST on laptop, is there GST on computers and computer devices?
In addition to GST on laptops, there is GST on computers and computer devices too.
Where can I verify the rate of GST on laptop, computers and other computer devices?
You can verify the rate of GST on laptops, computers, and computer devices on the official website of Central Board of Indirect Taxes and Customs.
What are some examples of computer devices subject to GST?
Hard drives, pen drives, and printers are among the computer devices subject to GST. For more details, go to the Central Board of Indirect Taxes and Customs website.
Why is it important to know the GST rate on laptops?
Knowing the GST rate on laptops ensures accurate tax calculation and compliance.
What is the GST rate on laptops where the computer monitors do not exceed 32 inches?
When the computer monitors do not exceed 32 inches, the GST rate on laptops is 18%.
Besides the GST rate on laptops, I want to find out the HSN code. Where can I get these details?
Both the GST rate on laptops and the HSN code are available on the Central Board of Indirect Taxes and Customs website.
Post GST, will I have to pay taxes at the GST rate on laptops as well as VAT?
GST has replaced VAT, and you have to pay only the applicable GST rate on laptops.
I want to buy a printer for my computer. Is that subject to GST?
Computer devices, including printers, are subject to GST. Thus, you will have to pay GST at the time of the printer purchase.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
