Table of contents

    Every laptop or computer sold in India includes a Goods and Services Tax (GST) in its price, and most buyers do not consider it further. However, if you're running a business, buying in bulk, or just curious why that MacBook costs what it does, GST for laptop pricing is worth understanding properly. Let us learn more about GST on laptops and related terms.

    What is the GST rate on laptops?

    The GST on laptops has been at 18% since the introduction of the Goods and Services Tax (GST) on July 1, 2017. The GST on laptops applies to every laptop sold in the country, whether it's a budget Windows machine or a high-end workstation. GST on laptops doesn't vary with brand, price, or configuration, as the rate stays flat. This predictability of GST for laptop buyers means they have one less thing to think about at checkout. Rates are set by the GST Council and can be revised, so it's worth checking the government portal for the latest notification before filing.

    HSN code for laptops and computers

    The Harmonised System of Nomenclature (HSN) Code 8471 under Chapter 84 covers all sorts of laptops, desktops, and their core components, formally known as automatic data processing machines. It is important to use the correct laptop HSN codes and GST rates on every invoice, as a mismatch can trigger notices during GST return scrutiny. Some common computer and laptop HSN codes and GST rates are shared below:

    ItemHSN codeGST rate
    Personal computer and laptops8471301018%
    Other portable digital automatic data processing machines8471309018%
    Microcomputer8471411018%
    Large or mainframe computer8471412018%
    Other automatic data processing machines8471419018%

    (Note: The HSN codes and GST rates might change over time. Check the latest rates to find the actual cost of the laptop.)

    GST on computer and computer parts

    GST for computer purchases mirrors the laptop rate at 18%, whether it's a full desktop system or an individual component. This computer GST rate applies broadly to:

    • CPUs, motherboards, and RAM modules
    • Storage devices like SSDs and hard drives
    • Graphics cards and internal cooling units
    • Assembled or custom-built desktop towers
    • Printers, keyboards, scanners, and mouse

    GST for computer buyers doesn't really change based on whether the parts are sold together or separately; each component simply carries its own applicable rate on the invoice. GST for computer parts settles at the same 18% mark, since most fall under HSN 8471 alongside the systems they build.

    GST on laptop accessories

    GST rates for peripherals and accessories often confuse buyers more than the laptop itself does. Here's a quick table of HSN and GST on laptops:

    AccessoryHSN codeGST on computer parts
    Keyboards, scanners, mouse, USB drive, external storage847118%
    Monitors (all sizes)852818%
    Printers844318%
    Laptop bags420218%
    Microphones, speakers and headphones851818%
    Laptop chargers and adapters850418%
    RAM and internal memory847318%

    While the HSN code for monitors varies for screen sizes above and below 32 inches, the GST rate has now been set uniformly at 18%. GST on computer items like these is charged at the standard electronic goods GST rate, making invoicing simpler for retailers.

    (Note: The HSN codes and GST rates might change over time. Check the latest rates to find the actual cost of the laptop.)

    How has GST impacted laptop prices?

    As an indirect tax, GST is added to the laptop’s base price, and the total shows up on the price tag. Take a laptop priced at ₹40,000 before tax: at 18%, that's ₹7,200 added, bringing the final cost (laptop price after GST) to ₹47,200. This is roughly what GST on laptop pricing has looked like consistently since 2017.

    Pre-GST vs post-GST: Laptop price comparison

    Before GST on laptops was rolled out, a state VAT of 14%-15% was charged on laptops. Depending on where you bought it, other cascading taxes, such as service tax or central excise, were also added. Here's how that compares to today:

    PeriodApplicable taxApproximate rate
    Before GSTState VAT (varied by state) + other taxes14% to 15%
    After GSTGST under HSN 847118% flat, nationwide

    So GST on laptops technically pushed the headline rate up a few points, but also erased the state-by-state variation and cascading tax effect that made pre-GST pricing unpredictable for laptop buyers everywhere.

    (Note: The GST rates might change over time. Check the latest rates to find the actual cost of the laptop.)

    Can businesses claim ITC on laptop purchases?

    Yes, and this scenario is where ITC on electronics genuinely helps company budgets. A GST-registered business buying laptops for office use can claim Input Tax Credit on the 18% paid, provided the purchase is backed by a valid tax invoice showing HSN code 8471. Say a company buys 10 laptops worth ₹5,00,000 plus ₹90,000 GST on laptops; that ₹90,000 can be offset against the business's output tax liability. GST for laptop purchases made for personal use, though, doesn't qualify for any credit at all.

    Conclusion

    The GST on Information Technology (IT) products, particularly laptops, is currently fixed at 18% under HSN 8471. Whether you're buying a single laptop, stocking computer parts in HSN categories for resale, or claiming ITC as a registered business, the GST on IT products stays the same across the board. Since the council can always revise GST on laptops, it's worth double-checking the latest figure before filing any return.

    To ensure effortless GST compliance, consider exploring Axis Bank’s GST solutions, which can help you check your GST liability and streamline your return-filing processes.

    Frequently Asked Questions

    1. What is the current GST rate on laptops in India?

    GST on laptop pricing has been set at 18% since 2017. The rate is the same for all laptop and computer classifications.

    2. What is the HSN code for laptops?

    Laptops fall under HSN code 8471, specifically sub-heading 847130 for portable data processing machines.

    3. Is there GST on second-hand laptops?

    GST on a second-hand laptop can be levied at 18% on the margin (sale price minus purchase price) if the margin scheme is applicable.

    4. Can you claim GST ITC on a laptop bought for business?

    Yes, as long as it's purchased for business use and supported by a valid GST invoice showing the correct HSN code.

    5. What is the GST on laptop bags and accessories?

    While the HSN code for computer parts may differ, the GST rate for laptop bags and other accessories is uniform at 18%. Similarly, the GST rate for printers and scanners is 18%

    Disclaimer:This article is intended solely for informational purposes. The views expressed in this article are personal. Axis Bank and/or the author shall not be liable for any direct or indirect loss or liability incurred by the reader arising from reliance on the content herein. Readers are advised to consult a qualified financial advisor before making any financial decisions. Axis Bank does not endorse or guarantee the accuracy of any third-party content or links included in this article.

    Tax and GST regulations are subject to change. The information in this article is based on applicable laws, rules, notifications, and interpretations in force as on the date of publication and may change due to amendments, judicial decisions, or regulatory updates.

    Learning Hub

    Planning your next money move? Spend a minute here