GST on Laptops 2023 - GST Rates & HSN Code for Computer Accessories

GST on Laptops

Deepshikha Nainani Posted on October 13, 2025

Particulars	Applicable Rate of GST
Laptop	18%
Desktop Computer	18%
Memory Chips (RAM)	18%
Optical Drives	18%
Hard Drive	18%
External Hard Drive	18%
Pen Drive	18%
Desktop Monitor: LED/LCD (<32 inches)	18%
Desktop Monitor: LED/LCD (>32 inches)	28%

Particulars

Applicable Rate of GST

Laptop

18%

Desktop Computer

18%

Memory Chips (RAM)

18%

Optical Drives

18%

Hard Drive

18%

External Hard Drive

18%

Pen Drive

18%

Desktop Monitor: LED/LCD (<32 inches)

18%

Desktop Monitor: LED/LCD (>32 inches)

28%

Particulars	HSN Code
Laptops, Desktops, and Personal Computers	8471
Printers, Keyboards, and USB Storage Devices	8471
Computer Monitors (Less than 32 inches)	8528
Monitors (Less than 32 inches)	8528
Printers	8443
Computer Keyboards, Mouse, USB drives, Hard disks, Other Storage Devices	8471

Particulars

HSN Code

Laptops, Desktops, and Personal Computers

8471

Printers, Keyboards, and USB Storage Devices

8471

Computer Monitors (Less than 32 inches)

8528

Monitors (Less than 32 inches)

8528

Printers

8443

Computer Keyboards, Mouse, USB drives, Hard disks, Other Storage Devices

8471

Latest GST Amendments on Laptops

In a significant move to streamline India's Goods and Services Tax (GST) framework, the GST Council introduced a two-tier tax system during the 56th GST Council meeting. This reform, effective from September 22, 2025, aims to simplify the tax structure and reduce the compliance burden on businesses and consumers alike. The new structure consolidates the previous multiple tax slabs into two primary categories: 5% and 18%. This simplification is part of the broader GST 2.0 initiative, which seeks to make the tax system more transparent and efficient.

GST Rate on Laptops

Under the new GST framework, laptops continue to be taxed at an 18% rate. This rate applies uniformly across all brands and configurations, providing consistency in pricing and simplifying tax compliance for consumers and retailers alike.

Under this revised framework, laptops and other personal computing devices continue to fall under the 18% GST slab. This rate applies uniformly across all brands and configurations, ensuring consistency in pricing and simplifying tax compliance for both consumers and retailers. Notably, this rate remains unchanged from the previous structure, reflecting the government's decision to maintain the existing tax rate for these essential electronic goods.

HSN Code for Laptops

The Harmonised System of Nomenclature (HSN) code is a globally recognised system for classifying goods. In India, the HSN code determines the applicable GST rate for a product. Laptops are classified under HSN code 8471, which encompasses automatic data processing machines and units thereof, including personal computers, laptops, and related peripherals.

Specifically, the six-digit HSN code for laptops is 84713020. This classification pertains to the portable digital automatic data processing machines that weigh a maximum of 10 kg, equipped with at least one central processing unit, a keyboard, and a display. Understanding this classification is crucial for businesses involved in the import, export, or sale of laptops, as it ensures accurate tax application and compliance with GST regulations.

GST Rates on Related Electronic Goods

While the GST rate on laptops remains unchanged, other electronic items have seen adjustments:

Desktop Monitors (under 32 inches): Reduced from 28% to 18%.
Desktop Monitors (under 32 inches): Reduced from 28% to 18%.
Keyboards, Mice, USB Storage Devices: Retained at 18%.
Printers: Retained at 18%.
External Hard Drives, Pen Drives, Optical Drives: Retained at 18%.
Laptop Adapters: Retained at 28%.

Input Tax Credit (ITC) Implications

Businesses registered under GST can claim Input Tax Credit (ITC) on laptops and related electronic goods, provided they are used for business purposes. This system enables businesses to deduct the tax paid on purchases from their output tax liability, thereby lowering the total tax burden. However, ITC is not available for personal use items. It's important for businesses to maintain proper documentation and ensure that the laptops and related goods are used exclusively for business purposes to avail of the ITC. Misuse or incorrect claims can lead to penalties and interest under GST laws.

To claim ITC on laptops, businesses must meet specific eligibility criteria outlined in Section 16 of the Central Goods and Services Tax (CGST) Act. These include possessing a valid tax invoice issued by a registered supplier, actual receipt of goods or services, confirmation that the supplier has paid the GST to the government, and timely filing of GST returns.

Acceptable documents for claiming ITC are tax invoices, debit notes, bills of entry for imports, as well as invoices from Input Service Distributors. Invoices must contain specific details, such as the supplier's and recipient's names and GSTINs, invoice number and date, HSN/SAC codes, and tax amounts. Non-compliance with these requirements can result in ITC disallowance, reversal, interest, and penalties.

It's also essential for businesses to maintain accurate records and ensure that the laptops and related electronic goods are used exclusively for business purposes. If these assets are used for personal purposes, the ITC claims must be reversed, and the corresponding amount added to the output tax liability. This reversal should be done in the GST return for the relevant period. Additionally, if the laptops are capital goods, businesses must consider the depreciation claimed under the Income Tax Act, as claiming both ITC and depreciation on the same asset is not permitted.

Impact on Consumers

The reduction in GST rates on related electronic items, such as desktop monitors and accessories, is expected to lower the overall cost of setting up a computing environment. Consumers can benefit from these changes by purchasing complementary products like monitors and peripherals at reduced tax rates, leading to overall savings.

Additionally, the simplification of the GST structure into two primary slabs (5% and 18%) is anticipated to reduce the complexity of tax calculations, making it easier for consumers to understand the tax implications of their purchases. This transparency can lead to more informed buying decisions and potentially lower prices due to reduced compliance costs for businesses.

Impact of GST on Other IT Accessories

IT accessories play an important role in enhancing the digital experience derived from a laptop or computer. The applicable GST rate on IT accessories such as LAN and data cables is set at 28% each; earlier, the applicable rate was 17.5%. Other accessories such as fax machines, photocopying machines, ink cartridges, and more come with a GST rate of 28% as opposed to the 18% rate levied earlier.

The Goods and Service Tax is now a major part of our daily purchases. Thus, if you are planning to purchase a laptop, you should be well-informed about the implications of GST on the given product. The detailed information and applicable HSN codes will help you make a smarter purchase decision with your electronic device.

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Frequently Asked Questions

Can I claim Input Tax Credit (ITC) on a laptop purchased for my business?

Yes, businesses registered under GST can claim ITC on laptops purchased for business purposes. To qualify, the laptop must be used exclusively for business activities, and the purchase should be recorded as a capital asset in the company's books. Additionally, the business must possess a valid tax invoice in its name, and the supplier must have paid the applicable GST.

What are the necessary documents for claiming ITC on a laptop?

In order to claim ITC on a laptop, businesses need to maintain proper documentation, including:

Possession of a valid tax invoice issued by the supplier, detailing the GST charged, is required to claim Input Tax Credit (ITC).
A debit note or bill of entry for imports, if applicable, should be maintained to substantiate the ITC claim.
Proof of payment of the GST to the supplier must be obtained to ensure the eligibility of the ITC.
Books of accounts reflecting the laptop as a capital asset should be updated to support the ITC claim.

Are there any restrictions on claiming ITC for laptops used partially for personal purposes?

Yes, if a laptop is used for both business and personal purposes, ITC can only be claimed proportionate to its business usage. For instance, if a laptop is used 70% for business and 30% for personal use, the ITC claim should be limited to 70% of the GST paid. It's crucial to maintain accurate records to substantiate the business usage percentage.

What are the penalties for incorrect ITC claims on laptops?

Incorrectly claiming ITC on laptops, such as inflating the business usage percentage or failing to maintain proper documentation, can lead to penalties under GST laws. These may include:

Reversal of the wrongly claimed ITC.
Interest charges on the reversed amount.
Additional penalties for deliberate misrepresentation or fraud.

It's imperative to ensure that all ITC claims are accurate and supported by valid documentation to avoid such penalties.

Can I claim ITC on laptops purchased for resale or rental purposes?

Yes, if a business purchases laptops for resale or rental purposes, it can claim ITC on the GST paid during the purchase. However, the laptops must be intended for sale or lease, and the business must be registered under GST. The purchase should be recorded appropriately in the books, and all necessary documentation should be maintained to support the ITC claim.