GST on Computers – Updated Rates & HSN Code Guide

Key Insights

1. Computers now have a GST rate of 18%. This one rate makes the tax straightforward for everyone to understand. 
    
2. Whether you're buying a ready-made computer or the parts to build one, you'll know exactly how much tax you're paying. 
    
3. Everyone, whether an individual or a business, pays the same 18% tax on computers and laptops.

The new GST structure, announced on 3 September 2025, brings relief for many consumers by reducing taxes on food, automobile, and electronics items.

Let’s understand the GST on the Computer with the Mukesh example:

Mukesh sets a budget of ₹50,000 to buy a new computer. He learns it is taxed at 18% GST (HSN Code 8471) rather than 28%. To check if he can afford it, he calculates the base price: ₹50,000 / (1 + 0.18) = ₹42,373. The GST is ₹7,627. 

Since the total fits his budget, Mukesh makes the purchase, satisfied that he checked the details and avoided surprise expenses.

This blog helps you understand the GST on computers. Next, we will discuss the New GST Rate on Computers.

New GST Rate on Computers & Major Components in India

The Government of India will update GST rates after 22 September 2025. Below are the expected new GST rates for computers and major components, excluding compensation cess.

This table shows the new 18% GST rate applied to major computer parts, making the tax system simpler for desktops and laptops.
 

While the single 18% rate clarifies things, it still means a high tax on essential computer hardware for businesses and everyday users. Now, the next topic is about the old GST on computers.
 

Bonus Tip: For most standard laptops and desktop computers, the GST rate remains at 18%. The recent changes primarily simplified the tax structure by phasing out the 12% and 28% tax slabs, but the standard rate for computers remains 18%.

GST on Assembled Computers and DIY Builds

This explains that all parts for custom PCs are taxed at a flat 18% GST, and the assembly service might have its own tax if charged separately.
 

• On each component, the GST applies at a rate of 18%.
   
• No additional GST on combining parts (assembly cost may attract GST if billed separately)
   
• Retailers' custom-built systems are billed separately.

This setup makes billing easier for retailers, but the total price of a custom computer still faces the full 18% tax.

Bonus Tip: Pre-installed branded software (like Windows or macOS) is considered part of the computer's value and is taxed at 18%. However, if you purchase standalone software or cloud-based subscription services separately, they may fall under a different GST category, often 18% for standard software services.

Input Tax Credit (ITC) for Businesses

These points outline key compliance steps for businesses purchasing components, with a focus on claiming Input Tax Credit (ITC) to manage costs effectively.
 

• You can claim Input Tax Credit.
   
• Make sure invoices include the correct HSN Code.
   
• ITC helps lower your GST liability on sales or services.

Proper documentation is important, as correctly claiming ITC directly reduces a business's final GST liability, improving cash flow.

HSN Codes for Computers and IT Accessories

The HSN code table is used to identify the precise GST rates for his computer components.
 

Research ensures an accurate final price, keeping the purchase perfectly within budget.

Conclusion

Most parts now have a single 18% rate, making pricing more affordable for consumers in India compared to the old GST. 

Indian Finance Minister Mrs. Nirmala Sitharaman introduced new GST on 3 September 2025, and you will receive benefits from 22 September 2025. We hope this guide helps you, just like it helped Mukesh, figure out the final price and choose a computer that fits your budget.

FAQS

If I buy a computer from another state, will I be charged extra IGST?

No. For individual consumers, the total GST remains 18%. The Integrated GST (IGST) simply applies instead of CGST+SGST, but the rate is identical.

Do computer repairs and servicing attract GST?

Yes, servicing and repair services for computers and laptops are taxed at a standard rate of 18%.

Is there a GST on old computers exchanged for a new one?

Yes, the new computer's invoice will show GST on its full value. The exchange discount is treated as a reduction in the selling price before tax calculation.

Are refurbished or second-hand computers subject to the new 18% GST?

Yes, the sale of refurbished computers is also subject to GST. The rate is still aligned with the standard rate for the product, which is 18%.

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About the Author

LoansJagat Team

‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.