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GST On Laptops

With the increase in the use of laptops across the Country (for work and personal use), the GST rate on laptops was raised during the transition period (from VAT to GST). This was to boost the Country’s indirect tax collection. It became a matter of concern for businesses, and arguments were raised to lower the GST rate on laptops to build a Digital India.

In this article, we shall discuss the following:

What Is The GST Rate On Laptops And How Is It Determined?

The GST Council fixes the GST rates. All goods and services are taxed under the following tax slabs, which have been linked to different Harmonised System Nomenclature (HSN) codes- NIL Rate, 0.25%, 3%, 5%, 12%, 18% and 28%

Under Schedule VI, HSN Code no. 8471 specifies the following – ‘Automatic data processing machines and units thereof…’

Based on this, we can say that this HSN code accommodates laptops. Therefore, the rate of GST for laptops under this HSN code is 18%.

GST Rate On Laptop Bag Supplied With Laptop

When a laptop bag is supplied along with a laptop, the bag becomes an ancillary supply, and the principal supply is the laptop itself. This will be treated as a composite supply, and the rate of tax on the bag will be the same as that of the principal supply, i.e., laptop. Hence the GST rate on the laptop bag will also be 18%.

GST Rate On Peripherals Supplied With Laptop

Along with the laptop, additional peripherals may be purchased by a user. These may include monitors, printers, optical drives, external hard drives, pen drives, etc. The GST rate on these items are specified under Schedule VI. We have summarised it here for you:

Name of the peripheral HSN Code Rate of GST
Monitor (Size < 32 Inches) 8528 18%
Monitor (Size > 32 Inches) 8528 28%
Printer 8443 18%
Optical Drive 8471 18%
External Hard Drive 8471 18%
Pen Drive 8471 18%

GST Compliance

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