Desktop HSN Code

Understand the Desktop HSN Code: Your Guide to GST Compliance

In today’s digital age, desktops remain a cornerstone for various professional, educational, and personal computing needs. For businesses involved in the sale, distribution, or import of desktop computers in India, understanding the correct Harmonized System of Nomenclature (HSN) code and its associated Goods and Services Tax (GST) rate is not just good practice – it’s a legal requirement. Let’s break down the classification of desktops.

Desktop HSN Classification

Desktop computers, along with other automatic data processing machines, are predominantly classified under Chapter 84: “Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof.” This broad chapter covers a wide range of machinery, and within it, specific headings are dedicated to computing equipment.

The key HSN heading for desktops and similar computing devices is 8471: “Automatic Data Processing Machines And Units Thereof; Magnetic Or Optical Readers, Machines For Transcribing Data On To Data Media In Coded Form And Machines For Processing Such Data, Not Elsewhere Specified Or Included.”

Within HSN 8471, the classification further refines based on the type of automatic data processing machine:

• Other Digital Automatic Data Processing Machines (HSN 847141): This category specifically includes desktop computers. The data provides a few sub-codes:
  • HSN 84714110: Often used for “Micro computer/processor including of high powered personal computer,” which can encompass standard desktops.
  • HSN 84714120: For “Large/Main Frame Computer.”
  • HSN 84714190: For “Other” digital automatic data processing machines comprising a central processing unit and an input and output unit, whether or not combined. This is a common code for complete desktop systems.
• Processing Units (HSN 84715000): This code is specifically for the central processing unit (CPU) of an automatic data processing machine, whether or not containing storage units, input units, or output units within the same housing. Many standalone desktop towers (CPU cabinets) would fall under this.
• Input or Output Units (HSN 847160): While the desktop itself is a system, its individual components like keyboards (84716040) or a mouse (84716060), if sold separately, also fall under HSN 8471. The broader HSN 847160 refers to “Input Or Output Units, Whether Or Not Containing Storage Units In The Same Housing.”
• Portable Automatic Data Processing Machines (HSN 847130): While the title is “Desktop HSN Code,” it’s worth noting that portable devices like laptops and palmtops also fall under HSN 8471. Sub-codes like 84713010 (Personal computer) and 84713090 (Other) are for such portable devices.

Understanding the GST Rate for Desktops

The overwhelming majority of desktop computers and their core components attract a consistent GST rate:

• GST Rate: 18%

This rate became effective from July 1, 2017, when the GST regime was implemented in India. This applies to the complete desktop system, its processing unit, and most of its essential accessories when sold individually.

It is crucial for businesses to use the accurate HSN code on invoices and other GST-related documents. Incorrect classification can lead to compliance issues, penalties, and delays in business operations. Always refer to the latest official GST notifications and the detailed HSN tariff for the most precise classification.