Understanding GST on Laptops in India: GST Rate, HSN Code, ITC

Understanding GST on Laptops in India: GST Rate, HSN Code, ITC

Goods and Services Tax (GST) is a value-added tax that is imposed on the supply of goods and services in India. With the introduction of GST in 2017, the indirect tax system in India underwent a major overhaul, and GST is now applicable to a wide range of goods and services, including laptops.

Laptops are classified as "IT hardware" under GST and are subject to a GST rate of 18%. This means that businesses selling laptops will have to charge 18% GST on the sale of laptops, and customers will have to pay 18% GST when purchasing laptops.

GST rate on laptops and computer accessories

Here is the complete GST rate list on laptops, desktops and other computer accessories-

Can Input Tax Credit (ITC) be claimed on the purchase of a laptop?

Input Tax Credit (ITC) can be claimed on the purchase of a laptop if the laptop is used for making taxable supplies and the purchaser is registered for GST in India.

Conditions for claiming ITC on laptop:

To claim ITC on the purchase of a laptop, the following conditions must be met:

• The purchaser must be registered for GST.
• The laptop must be used for making taxable supplies, that is, it should be used in the course or furtherance of business.
• The invoice or bill for the purchase of the laptop must be in the name of the person claiming ITC and should be issued by a registered supplier.
• The invoice or bill must contain all the necessary details as required by GST laws, such as GSTIN, HSN code, etc.
• The invoice or bill must be paid within 180 days from the date of invoice, and the Input Tax Credit can be claimed in the same tax period in which the invoice is paid.