GST on Laptops

It doesn’t matter whether you are a student, business owner, employee, or a normal person, you need electronic devices. We are living in a world, which is digitally revolutionised. And, laptops play a crucial role. However, the GST (Goods and Services Tax) on a laptop has increased over time from 15% to 18%. 

This is the reason why laptops have become expensive suddenly. But before we give you complete information, let us understand the gist of this taxation system.  

Before the emergence of GST, we had many indirect taxes but now GST has streamlined the taxation system. Now, no indirect tax is levied on every value addition stage. 

Take a glance and understand the impact of GST on laptops, its calculations, and the types of GST rates on various computer accessories. 

Impact of GST Rate on laptops, After GST Regime

With the improved technology in electronic devices, they have become more feasible. But since the Government levies, 18% of GST, laptops and computers have become more expensive. You have to pay 18% GST on every electronic product like hard drives, pen drives, keyboards, mice and other accessories. In a nutshell, you are not only paying for your laptop but also additional charges, which in this case is 18% GST.  

Here are examples that display the before and after GST price impact on laptops and other accessories.

You can see that a wireless keyboard that would once have cost you only Rs. 1000 has now increased by INR 180 due to the 18% GST. 

In the second example, the laptop GST rate is 28% because the screen size is more than 32 inches. Therefore, a Lenovo laptop of Rs 1 lakh costs you One lakh and twenty-eight thousand. 

In the third example, the 18% of Rs. 60,300 is Rs. 71,154. The amount difference is almost eleven thousand. It’s a huge amount that can disturb the budget of any middle-class person. 

You can further see the impact of GST on several manufacturers’ laptops to understand this trend better. 

HSN Code for Laptops And Computer Devices 

HSN code stands for Harmonised System of Nomenclature. It works as a global standard for the classification of goods. It is simply an HSN code of a six-digit universal number that categorises around 5000 products and is acceptable worldwide. 

The HSN category is purely for taxation purposes. It helps determine the tax rate applicable to a certain product in a given country. HSN code helps in a compensation claim and import or export calculations.

HSN Code for Computers, laptops and other accessories

Here is the table representing the 4-digit and 6-digit laptop HSN codes and other electronic devices. 

Importance of HSN Code:

HSN code’s main purpose is to classify the items more systematically. It helps in collecting information and solving problems that are difficult to address. HSN code is accepted in more than 200 countries.

The advantages of laptop HSN code are as follows:-

• Data about statistics on international trades.
• Forming a reasonable foundation for customs charges.
• A uniform classification

Also, the HSN code classifies 98% of the world stock trade. 

GST Rate Applicable on Laptops And Desktop Computers  

The GST council determines the GST rates on laptops and other goods. The Indian Government takes all the measures to lower these rates on any given product whenever the revenue collection surpasses the projections.

However, the applicable rates are not fixed. They keep on changing depending upon the new approvals and suggestions of the GST council. Here are the new rates on electronic devices.

Type of GST Applicable to Laptops, Computer and Accessories

Here are the three different applicable laptop GST rates. These rates are also relevant to other electronic gadgets. 

• CGST – Central Goods and Services Tax
• SGST – State Goods and Services Tax
• IGST – Interstate Goods and Services Tax 

The total applicable GST rate on laptops is equivalent to CGST (50%) + SGST (50%).

The 18% GST on laptops and their accessories is 9% CGST + 9% SGST.

However, in the case of interstate transfer of products, 18% IGST is also applicable to these products.

How to Calculate GST on Laptops and Computers in India?

To calculate GST on laptops, you can use the following formula. This will help you in calculating the net price of the product. 

The formula for Adding GST:

GST Amount = (Original Cost x GST%)/100

Net Price = Original Cost + GST Amount

GST calculation Example:

Suppose you bought a laptop for Rs. 75,000. And the applicable GST rate on a laptop is 18%.

Then the net price of the laptop becomes;

Rs. 75,000 +18% of Rs. 75,000

= Rs. 75,000 +Rs. 13,500

= Rs. 88,500

Conclusion

The article is all about how GST has impacted laptop prices. It all happened because of the rise in GST tax from 15% to 18%.  The Indian government’s slogan – One Nation, One Tax for GST also decreased several indirect taxes. This system has lots of advantages and a few disadvantages. It has established an inherent taxation system. 

We hope this article helped to answer all your questions regarding laptop GST rates,  laptop HSN codes and GST calculations.

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