HSN code is a kind of nomenclature that is used for computers and laptops. This is an international method to name the products. Along with naming, classification and identification are also done. Here is some information about HSN Code for Computers and Laptops.
Understanding HSN code
Earlier, a six-digit code was used as an HSN code by the government, but as time passed, it was converted into an eangeight-digit to make the code more precise. Now, if we talk about computers, laptops, and other electronic gadgets, they have their own codes. The code of these devices is 8471.
The first two digits of the number 8 and 4 represent a big category which includes so many mechanical things such as computers, laptops, boilers or even very huge devices such as nuclear reactors.The other two digits 7 and 1 are specific for specific objects.
Here these two digits refer to the machines that handle the data automatically which means they take the information in the form of input, process it and then send the output. So, simply we can say that HSN codes help the government in the organization of products and the code for computers and laptops is 8471.
Relation between HSN code and GST
It is essential to find the correct HSN code because the amount that has to be paid GST ( Goods and Services Tax) during the selling of the products is decided by the HSN number.
So, if you know the HSN code of the product, you can easily calculate the amount of GST.
HSN code for laptop
Now, let us understand the HSN code of the laptop in detail.
- The HSN code in Chapter 84 includes all types of personal computers, laptops, and other related devices.
- This chapter deals explicitly with Automatic data-handling machines.
- The code 8471 is assigned to the computers.
- The GST charged for this code is 18%.
- If a device is connected to the primary device with code 8471, then the code of that connected device is also 8471.
- The code of the supporting systems, such as the mouse, keyboard, etc, is also the same.
- Automatic data handling machines include all the electrical devices.
It is essential to stay informed as changes may occur in the HSN codes.
HSN codes for computer hardware and software
As discussed earlier the common code of all computing devices is 8471. Now let us look at codes in more detail.
847160
This code is used for various devices that serve the purpose of printing and all the input devices such as the mouse, keyboard , scanner etc.
847170
This code is used for all storage devices such as hard disks, etc.
847130
This six-digit code is used explicitly for computers that weigh less than 22 pounds. It is mainly used in homes and in offices.
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Exporting Computers and Laptops with HSN Code
When it comes to exporting PCs and laptops, the HSN code helps to streamline international trade processes. The code 8471, which is reserved for PCs and laptops, aids in precisely identifying items across many nations, ensuring uniformity and limiting the possibility of misclassification.
Exporters must include this HSN code on all shipping papers, including invoices and customs declarations, to ensure seamless customs clearance and avoid delays.
Furthermore, understanding the applicable GST rates and any export levies associated with the HSN number 8471 is critical for pricing products competitively in the worldwide marketplace. Being knowledgeable about these issues not only facilitates compliance with international trade standards but also increases the efficiency of export operations.
Also, many institutes, such as the Lime Import Export Institute, provide all the necessary knowledge on import-export.
Wrapping It Up
In this blog we had a look at HSN codes for laptops and computers and how they are related to GST. It is very important to understand these as it helps to simplify the world of commerce.
HSN codes are the special codes that are used by the government to name, classify, and identify various products. The HSN code for computers and laptops is 8471. It also has a relation with GST. For a specific code, there is a particular amount of GST to be paid.
FAQs
It is very important to stay updated about the HSN code because it is directly related to the GST that is Goods and Service Tax. GST is different for different HSN codes. Also it keeps you updated about what is going on in the world of commerce and trade.
HSN codes are used to name, classify, and identify products.
The HSN codes for the devices which are used as input are the same as that of computers and laptops and for printers it is 847160.
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